The dollar has continued to gain ground against the euro, the pound, and other risk assets, despite weak data on the American economy.

It is worth noting that despite concerns about a slowdown in economic growth, inflation data showed resilience, remaining at levels that, according to many, do not require immediate intervention from the Federal Reserve but that are already creating problems for the committee. On the one hand, weak economic indicators typically have a negative impact on the dollar's exchange rate. On the other hand, stable inflation may prevent the Fed from taking decisive steps to stimulate the economy, which, in turn, could provide support for the dollar in the short term. Traders seem to interpret the current situation as a signal for cautious optimism. They may anticipate that the American economy can overcome the temporary difficulties arising from the conflict with Iran and restore growth rates in the foreseeable future.

Today, there is no data from the Eurozone in the first half of the day, so the EUR/USD pair may continue to decline. The absence of significant economic news may bolster already-formed market sentiment, allowing the current trend to develop without substantial corrections. Euro buyers, frightened by the war in the Persian Gulf, have taken a wait-and-see approach and are hesitant to make active purchases amid uncertainty and a lack of new growth drivers. At the same time, bearish sentiment regarding the pair, which had previously been active, may receive renewed reinforcement.

Also, today, there is no data from the UK, so there may be problems with the ongoing upward correction of the pound seen during the Asian trading session. The lack of fresh macroeconomic data from the United Kingdom deprives the market of new catalysts for strengthening the British currency, leaving it vulnerable to potential corrections.

Momentum Strategy (Breakout):

For the EUR/USD Pair

Long positions on a breakout of level 1.1453 may lead to a rise in the euro to around 1.1487 and 1.1527;

Short positions on a breakout of level 1.1420 may lead to a drop in the euro to around 1.1385 and 1.1347;

For the GBP/USD Pair

Longs on a breakout of level 1.3266 may lead to a rise in the pound to around 1.3290 and 1.3330;

Shorts on a breakout of level 1.3245 may lead to a drop in the pound to around 1.3215 and 1.3175;

For the USD/JPY Pair

Longs on a breakout of level 159.47 may lead to a rise in the dollar to around 159.74 and 159.94;

Shorts on a breakout of level 159.18 may lead to a decline in the dollar to around 158.81 and 158.53;

Mean Reversion Strategy (Pullback):

For the EUR/USD Pair

I will look for shorts after a failed breakout above 1.1460 on a return below this level;

I will look for longs after a failed breakout below 1.1425 on a return to this level;

For the GBP/USD Pair

I will look for shorts after a failed breakout above 1.3274 on a return below this level;

I will look for longs after a failed breakout below 1.3230 on a return to this level;

For the AUD/USD Pair

I will look for shorts after a failed breakout above 0.7031 on a return below this level;

I will look for longs after a failed breakout below 0.7002 on a return to this level;

For the USD/CAD Pair

I will look for shorts after a failed breakout above 1.3279 on a return below this level;

I will look for longs after a failed breakout below 1.3700 on a return to this level;