FOREX NEWS: US RETAIL SALES: THE DAY’S HEADLINEEUR/USD
Forex News: Yesterday the pair traded without clear direction and the bulls made a timid attempt to take price higher but this didn’t result in a break of resistance. No major economic data was released, contributing to the day’s slow movement.Technical Outlook
The downtrend is intact but the Relative Strength Index is still moving very close to its 30 level, a fact which suggests an almost oversold condition of the market. This increases the chance of bullish moves which should be considered – if they do occur – just pullbacks in a downtrend, not reversals. Resistance still sits at 1.3560 followed by 1.3585, while the first lower target is represented by 1.3500.Fundamental Outlook
The ECB Monthly Bulletin is released at 8:00 am GMT, revealing the Bank’s outlook concerning future economic conditions as well as information about the statistical data which was analyzed when the interest rate decision was made. The impact of the release varies, depending on the bank’s stance.
Later in the day, at 12:30 pm GMT the US Retail Sales come out, showing the change in the total value of sales made at retail outlets. Consumer spending accounts for about two thirds of all US economic activity and retail sales make up for about one third of this spending so the impact of the release is usually very high. The anticipated change is 0.5%, compared with last month’s 0.1% and under normal circumstances higher figures strengthen the US Dollar.GBP/USD
United Kingdom’s unemployment numbers came out better than expected, generating Pound strength and driving the pair higher. The entire day was controlled by the bulls and for the time being support is holding.Technical Outlook
The bounce-or-break scenario we mentioned before came to a clear conclusion yesterday as we saw a bounce higher off 1.6750 support. This rejection opens the door for a touch of 1.6820 resistance but this level proved very tough to break during last week and this week as well so once price touches it again, we expect a move south. The US Retail Sales data released today will play an important role in this scenario.Fundamental Outlook
The United Kingdom didn’t schedule any major economic releases for today so price direction will be mainly influenced by technical factors and by the US Retail Sales.