EUR/USD: U.S. Retail Sales to Guide the Pair (1.3660)

The pair continues to trade within a consolidation range as developments in the EuroZone continue to linger.

Concerns over Greece have eased, helping the Euro hold ground. Focus will now be on the proposed IMF-style institution, economic data from the US and the EuroZone, and performance in stocks.

The ECB is still expected to leave rates unchanged for the remainder of the year, while traders anticipate the FED could possibly increase rates by middle to end of the year. This prospect should drive the markets and changes in the viewpoint are liable to data and policy makers.

All eyes will be focused on tomorrow’s U.S. retail sales data which could strongly impact the markets. Sales are expected to fall by 0.1%, while excluding autos — sales are anticipated to rise by 0.1%. Preliminary readings in the University of Michigan sentiment will also be released.

Trend:

Weekly : Sideways
Daily: Sideways
Hourly: Sideways

Support & Resistance:

From current levels, 1.3663, the pair finds initial resistance at 1.3704, followed by 1.3750, and 1.3805.

Key support to watch is the 1.3620 where a break of such would open targets to the 1.3545 level, followed by 1.3486, and 1.3445.

Strategy:

Stand aside for now. Currency traders will monitor stock markets for further guidance.

DISCLAMER: The above post is for information only. Before making your investment decisions please acknowledge that the information provided herein should not be taken without your own individual assessment and extensive investigation, it should not be preempted as your own trading strategies, investment advice and/or trading portfolio.
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