FOREX NEWS: US DATA IN THE SPOTLIGHT
EUR/USDForex News: Yesterday’s trading direction was mostly affected by the disappointing value of the US Retail Sales which weakened the greenback and allowed the pair to climb. The high-to-low range was small however and it seems like the pair cannot regain its normal volatility.
Technical OutlookThe climb seen yesterday took the Relative Strength Index away from oversold, opening the door for a resumption of bearish movement. A good place where price can start to move south is represented by the resistance at 1.3585, assuming the current level of 1.3560 is broken. A move above 1.3585 would tip the scales in favor of the bulls.
Fundamental OutlookThe US Producer Price Index is released today at 12:30 pm GMT, showing the change in prices charged by producers as compared to the previous month. The forecast is for a drop from 0.6% to 0.1%, a fact which would weaken the US Dollar.
The second important indicator of the day comes from the United States as well, in the form of the Consumer Sentiment, scheduled for release at 1:55 pm GMT. This is a survey of about 500 consumers, conducted by the University of Michigan and is often regarded as a leading indicator of consumer spending. The anticipated value is 83.2, an increase from the previous 81.9 and higher numbers are beneficial for the US Dollar.
GBP/USDThe effect of the American Retail Sales was seen on this pair as well and for almost the entire trading session the bulls were in control of price action.
Technical OutlookThe resistance at 1.6820 was broken on the back of US Dollar weakness and it seems like the bulls are making a run for 1.6880 which is the next resistance and immediate upper target. If this level will be reached, the Relative Strength Index will most likely move above its 70 level, signaling an overbought condition and increasing the chance of bearish moves. During the day, 1.6820 may act as support.
Fundamental OutlookThe United Kingdom doesn’t release today any major economic indicators and price direction will depend mostly on the US data and on the technical aspect.
This post has been edited by GDMFX: Jun 13 2014, 03:24 PM
