During the last sessions trades on majors are quite active. At the same time, a unidirectional trend is not observed. The dollar index (#DX) is in a sideways trend. Over the past two weeks, the key range of 96.40-97.00 has been formed. The attention is still focused on the trade talks between Washington and Beijing, as well as the uncertainty regarding Brexit. The President of the United States again criticised the Fed's policy, which put additional pressure on the US currency. Donald Trump believes that the regulator by its actions slows down the economic growth of the country. At the moment, financial market participants expect additional drivers.
This week several important economic releases from the United States will be published, which may have a significant impact on the balance of power on majors in the short term.
We recommend paying attention to the Philadelphia Fed's Manufacturing Index and retail sales statistics, which will be published on Thursday (15:30 GMT+3:00). This index determines the economic well-being of the manufacturing sector of the Philadelphia federal district and has a rather strong influence on the dynamics of the US currency. Experts expect that in April, the figure will slow from 13.7 to 10.4.
Retail sales statistics are the key indicator of consumer spending, which reflects consumer confidence and is considered to be an essential indicator of the health of a country's economy. We recommend taking into account the difference between actual and forecasted values.
Let's consider the current technical pattern on the EUR/USD currency pair
- Support levels: 1.12800, 1.12450, 1.12100
- Resistance levels: 1.13200, 1.13700, 1.14200
- - 50 MA has crossed 200 MA;
- - The MACD histogram is in the positive zone, but below the signal line.
At the moment, the EUR/USD currency pair is consolidating. The technical pattern is ambiguous. The trading instrument is testing local support and resistance levels: 1.12800 and 1.13200, respectively. Indicators do not send accurate signals:
We recommend opening positions from key levels.
If the statistics from the US turn out to be positive, a further fall in the EUR/USD quotes is expected. The movement is tending to the round level of 1.12000.
An alternative could be the growth of the EUR/USD currency pair up to the level of 1.13700-1.14000.
Confirmations and entry points to the market should be looked for on lower timeframes. When tracking positions, we recommend using a trailing stop.
This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.Open Account