Good day forex traders.
It is time for the weekly review of the EUR/USD currency pair.
In our previous review we noted that the currency pair is on a downward momentum. While by mid-week there appeared to be a bullish attempt at a recovery, any continuation would require a clear breach of the 1.18 resistance.
Looking at the weekly chart above, we observe that the middle bollinger band is playing the role of an immediate support.
In the previous review, we spoke of the need to have a clear breach of the 1.18 resistance before the bullish recovery establishes itself. This has yet to happen.
We are likely seeing an increase in demand for the US dollar as retail sales turn out better than expected. Bloomberg reports ”
U.S. retail sales increased last month after a bigger September advance than previously estimated, indicating resilient demand heading into the holiday shopping season, according to Commerce Department figures released Wednesday.
The broad-based advance in October sales and a stronger hand-off from an upwardly revised September show American consumers will continue to fuel the economy in the fourth quarter. Steady hiring, rising asset values and limited inflation are underpinning consumer spending.
Vehicle sales were firmer, though the gain was smaller than the previous month when the recovery from two hurricanes boosted purchases. Industry figures released earlier showed sales of cars and light trucks cooled in October from the fastest annualized rate since 2005.
Among other retailers, sales accelerated in October at furniture stores, electronics and appliances outlets, restaurants, clothing stores and sporting goods merchants. ”
We are due for the US Federal Reserve FOMC meeting minutes this week. It is a detailed record of the FOMC’s most recent meeting. Paying attention to this may bring in-depth insights into the financial and economic considerations which resulted in their votes on the decision of interest rates. Any unexpected development is likely to result in increased volatility.
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