The Euro is trading slightly higher against the U.S. Dollar shortly after the U.S. opening. The market is being underpinned by this week’s weaker-than-expected U.S. PPI and CPI reports. Combing both reports and we get an indication that perhaps the Fed’s strategy to gradually raise rates may be working to stop inflation from running wild.
At 1114 GMT, the EUR/USD is trading 1.1701, up 0.0011 or +0.10%.
At 1230 GMT, investors will get the opportunity to react to the latest U.S. Retail Sales and Core Retail Sales reports. They are expected to rise 0.4% and 0.5% respectively.
Daily Technical Analysis
The main trend is up according to the daily swing chart. If the upside momentum continues then look for buyers to make a run at the August 28 main top at 1.1734. Taking out this top will reaffirm the uptrend. This could trigger further rallies into the July 23 main top at 1.1751, followed by the July 9 top at 1.1791.
The main trend will change to down on a trade through 1.1526.
The main range is 1.1301 to 1.1734. Its retracement zone at 1.1518 to 1.1466 is major support.
Daily Fundamental Forecast
Based on the early price action, the direction of the EUR/USD the rest of the session is likely to be determined by trader reaction to the steep uptrending Gann angle at 1.1686.
A sustained move over 1.1686 will indicate the presence of buyers. If this creates enough upside momentum then look for a potential test of 1.1734 and 1.1751.
A sustained move under 1.1686 will signal the presence of sellers. The daily chart is wide open under this Gann angle with the next target angle coming in at 1.606.
This article was originally posted on FX Empire
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