EUR/USD should decline

Note: This section contains information in English only.
Source: Dukascopy Bank SA

On Tuesday, the EUR/USD traded below the resistance of the 100-hour simple moving average, which during the morning hours was located at 1.1260.

If the simple moving average continues to push the pair down, the rate should eventually reach the weekly S1 at 1.1209.

Latest Fundamental Event

The European Common Currency traded sideways against the US Dollar, following the US Retail Sales data release on Thursday at 12:30 GMT. The EUR/USD exchange currency rate lost 9 pips or 0.08% right after the release. The Euro continued trading at the 1.1245 level against the US Dollar.

Census Bureau released the US Core Retail Sales data that came out better-than-expected of 1.2% compared with forecast 0.7%.

According to experts, the US retail sales showed the fastest growth since late 2017. In March, sales for automobiles, petrol, furniture and clothing surged. This advance might signal that consumers tend to spend more due to the healthy job market.




Last week of the month

During this week there will be a couple of macroeconomic events to watch, avoid or trade.

First, the Canadian central bank will publish their interest rate on Wednesday at 14:00 GMT.

On Thursday, the US Durable Goods Orders data will be published at 12:30 GMT. This event can cause a move of up to 20 base points.

The data will end on Friday, as at 12:30 GMT the US Advance GDP will be published. This is the top US data set, which has the largest impact on the USD.

Meanwhile, check out previous data release covers and economic calendar analysis on the Dukascopy Webinars YouTube channel.
Click Here: YouTube Channel

EUR/USD hourly chart's review

The EUR/USD is being pushed down by the 100-hour simple moving average, which on Tuesday was located at the 1.1260 level.

In general, it is expected that the simple moving average will push the currency exchange rate down to the weekly S1 at the 1.1209 level.

On the other hand, the rate might find support in the 55-hour SMA, which was located at the 1.1250 level. However, it was showing signs of weakness, as the SMA was being pierced by the currency exchange rate.

Hourly Chart



As it was previously stated throughout last week, main moves were caused by the 55-day SMA. On Thursday, the SMA together with the fundamental data pushed the GBP/USD down.

In regards to the future, there is nothing to add. The 55-day SMA will come down and continue to provide resistance to the currency pair.

Daily chart

Traders short the pair

On the Swiss Foreign Exchange rate 73% of the total open position volume was in short positions.

Meanwhile, trader set up pending orders in the 100-pip range were bearish. Namely, 55% of all orders were set to sell.

Actual Topics

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