As a Gold Trader understanding and interpreting CPI data is crucial for making informed trading decisions. Here's a guide on how to read CPI data and a trade idea based on potential CPI outcomes:
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Understanding CPI Data:
CPI Basics: The Consumer Price Index (CPI) measures changes in the price level of a market basket of consumer goods and services...
Price broke below the KL but the next 30 minute candle closed back above, indicating a small liquidity grab for price to move back up. CPI was to follow and as the next hourly candle broke the previous high, buys were entered with us anticipating CPI to drive price back up to the next KL. Secured some profits there, and left a runner to target the KL at 1.26900.