Forex News: Yesterday’s trading session was characterized by a break of 1.0870 followed by a bullish move into the resistance at 1.0945. The pair is now capped by resistance and shows rejection.
The touch of 1.0945 zone resulted in a quick move lower which shows rejection but also that the bulls are not yet ready to break this level. Nonetheless, the latest impulse is bullish and the pair is trading above the 50 period Exponential Moving Average and above 1.0870 which is now support. The Stochastic is wide open, heading upwards and showing good momentum but the Relative Strength Index doesn’t have a clear direction so the oscillators paint a mixed picture. A lot of today’s movement will depend on the fundamental scene but if price descends below 1.0870, we expect it to touch 1.0800.
The US Dollar has a busy day today, with the first major release being the U.S. Retail Sales scheduled at 1:30 pm GMT. Sales made at retail levels represent a big part of overall economic activity and usually an increase in such sales strengthens the greenback. Today’s forecast is a change of -0.1% compared to the previous 0.2%.
At 3:00 pm GMT the University of Michigan will release a Consumer Sentiment survey which is considered high-impact because consumer confidence leads consumer spending. Higher numbers than the anticipated 92.7 usually strengthen the US Dollar.
The Bank of England kept the interest rate unchanged and the MPC members didn’t change their stance regarding a hike but the event created volatility nonetheless. However the pair didn’t make substantial advances to either side.
The main trend is without a doubt bearish but we are likely to see the start of a consolidation phase between 1.4350 and 1.4475. A break of either of these levels would mean that the ranging period is over and that more directional movement will follow. The oscillators still favour a stronger move to the upside, possibly into the 50 period Exponential Moving Average be we don’t anticipate such a strong move to happen today.
The United Kingdom didn’t schedule important indicators for today so all eyes will be focused on the United States for the releases we’ve mentioned earlier.
We hope you had a profitable trading week and we wish you a relaxing weekend.