Will USD halt downside on strong U.S retail sales data?!


The U.S data comes green today. Retail sales data stands at 0.3% as expected. Core Retail Sales rose by 0.7%, from 0.1% in the preceding month, passing a forecast of 0.5%. Philadelphia Fed Manufacturing Index rose by 17.0, from 2.4 a month earlier, passing a forecast of 3.8 in the last month. The question now is Will USD halt downside on strong U.S retail sales data?! The simple answer: It’s not clear yet. The USD may halt downside or it could be a selling opportunity for the USD?!!

EURUSD: The pair trades around 1.1162 ( critical resistance). According to the 1-hour chart. A short-term resistance has been printed at 1.1172 levels. An hourly closing above that level will extend the bullish move to 1.1213 levels. A failure to break above 1.1172 level may bring a consolidation followed by a sudden fall?! Support comes around 1.1145 levels. Below that level sees further weakness to 1.1125 levels. The next support comes around 1.1090 levels. On the upside, above 1.1172 aims 1.1213 levels. A break aims at 1.1240 levels ahead of 1.1295 levels.

The focus will be next on ECB President Christine Lagarde Speaks at 18:00 GMT.

GBPUSD: The pair has broken above 1.3045 static resistance. So far this level is serving as support. The question: will 1.3045 hold as support or it’s gonna fail?!

The pair needs to hold and close above that level ( daily basis ) to prevent a return to the downside. Above 1.3045 aims at 1.3085 levels ahead of 1.3135 levels. A failure to hold and close above 1.3045 could mean a return to 1.2985 levels. The next support comes at 1.2930 levels.

USDJPY: According to the 1-hour chart. The pair is bullish. Testing daily chart resistance at 110.10 levels. above that level aims at the 110.75 levels. The next resistance comes in 111.50 levels ahead of 112.05 levels. On the downside, the pair remains very bullish as long as the daily closing is above 109.57 levels. Mains support comes in 109.00 levels. A daily closing above 110.10 is needed to extend the bullish move beyond 110.00 levels.