- The EUR/USD pair maintains a bearish bias despite temporary rebounds.
- A new lower low activates more declines.
- The US retail sales data brings high action.
The EUR/USD price continues to stay below the 1.0000 psychological level. It is now at 0.9976 and seems undecided in the short term.
-If you are interested in knowing about ETF brokers, then read our guidelines to get started-
Most likely, the traders are waiting for the US economic data before taking action. The USD maintains a bullish bias despite temporary drops as the FED is expected to increase the Federal Funds Rate next week. A 75bps rate hike is expected, but we cannot exclude a 100bps hike after higher inflation reported by the US.
Today, the retail sales data could shake the markets. The indicators are seen as a high impact event. The Retail Sales indicator is expected to report a 0.1% drop in August versus a 0.0% growth in July. The Core Retail Sales could register a 0.0% growth compared to the 0.4% growth in the previous reporting period.
In addition, the Empire State Manufacturing Index could be reported at -12.7, Unemployment Claims are expected at 225K in the last week, and Industrial Production may report a 0.0% growth. At the same time, the Capacity Utilization Rate could drop from 80.3% to 80.2%. Better than expected, US data could help the USD to appreciate versus its rivals.
Dollar Index price technical analysis: Bullish bias
As you can see from the hourly chart, the Dollar Index is trapped between 109.29 and 109.97 levels. After its strong rally, the index retreated a little and is now attempting to accumulate more bullish energy before extending its growth. A new higher high, jumping and closing above 109.97, activates further growth.
EUR/USD price technical analysis: Rangebound behavior
The EUR/USD pair moves sideways between 1.0023 and 0.9955 levels. After its massive drop, a minor rebound or a distribution pattern was expected. The price failed to stabilize above the 1.0000 psychological level and the weekly pivot point of 1.0010, signaling strong downside pressure. The bias remains bearish as long as it stays under the median line (ML) of the descending pitchfork.
-Are you looking for high leveraged forex brokers? Take a look at our detailed guideline to get started-
The 0.9952 level represents a downside obstacle as well. A valid breakdown below this level activates more declines. Only staying above this key level and registering a valid breakout, the 1.0023 signals a larger rebound.
Looking to trade forex now? Invest at eToro!
68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.