Market Focus Analysis:
Pulse Focus 1: U.S. July CPI declined to 3.4%, while core CPI fell to 2.5%. The largest contributor was the drop in energy prices. A core CPI of 2.5% marks the lowest level since the pandemic.
Focus Interpretation: Since the decoupling with China, rising inflation in the U.S. has been inevitable. The current core CPI decline to 2.5% is already considered a relatively reasonable level. The Fed’s original long-term target of 2% fails to account for the actual impact of ongoing trade wars and tariff conflicts. Following this data release, expectations for a September rate hike have dropped to around 40%, and are expected to decline further.
Instrument Reminder: London gold surged toward the 4450 level this morning before retreating. Technically, there is some risk of extended sweeping liquidity. Today, monitor performance near the 4370/90 zone, watch for potential V-shaped reversals.
Plugin Case Examples
Gold: Yesterday, after breaking through the yellow zone liquidity, gold showed multiple V-shaped reversals—perfectly aligning with our plugin’s expectations. Today, continue monitoring low-sweep liquidity V-reversals near 4370; also watch for a breakout near 4430, followed by a retest of the blue zone for buy limit entries. For detailed positions, please consult the plugin.
(Gold 15-minute chart)
Nasdaq: Yesterday, the blue zone breakout we flagged via our plugin led directly to a buy stop entry—results were flawless. Today, we will continue monitoring momentum signals, waiting for price to retest 29,900 before entering a buy limit in the blue zone. For precise levels, please consult the plugin.
(Nasdaq 15-minute chart)
Crude Oil: With CPI data confirming two consecutive months of declining inflation, we now await President Trump’s stance on the Strait Agreement 2.0. We maintain a strategy to short following a potential rally. For detailed positioning, please consult the plugin.
(Crude Oil 15-minute chart)
Key Financial Data and Events Today:
20:30 U.S. July PPI
