Forex News: US Dollar Posts Minor Gains, Pound Boosted by Retail Sales Numbers
Forex News: The Final version of the Eurozone CPI matched analysts’ expectations yesterday so the release didn’t have a substantial impact and the pair showed choppy movement throughout the day, with a bearish bias.
The last few candles show very long wicks, especially in their upper part, which is a sign that bullish pressure is not yet high enough to resume the upwards movement. Today we may see a move lower, into the support at 1.1735 but overall the pair remains in a short term uptrend and the Relative Strength Index has cleared its overbought condition so after the retracement finds support, we will probably see a move up.
Today at 8:30 am GMT, ECB President Mario Draghi will deliver a speech at the Frankfurt European Banking Congress. The impact of the event cannot be anticipated but caution is always advised when heads of central banks speak publicly.
On the US Dollar side we have the Building Permits, scheduled at 1:30 pm GMT and expected to show a reading of 1.25 Million. The indicator shows the annualized number of construction permits and acts as a gauge of activity in the construction sector; numbers above expectations usually strengthen the greenback but the impact is medium.
The British Retail Sales came out above expectations yesterday and this was the main reason for the climb seen early in the session. However, the pair remained in a range overall.
Price is currently testing 1.3175 from above and if this level will turn into support, rejecting the pair higher, then we will most likely see an encounter with the resistance at 1.3225. A break of that level would show that the pair is ready to exit the range that confined it during the last period, and head into 1.3280. As long as price is trading above the 50 EMA our bias is slightly bullish.
The Pound will not be affected by economic data today, so the main focus will be the technical side and the U.S. release mentioned earlier.
Written by: Bogdan Giulvezan
The article above is based on the writer’s 7-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.