U.S. Economic Metrics Are Out, EUR/USD Nearing Robust Support Levels
Shain Vernier • 2 min read
Last week was a big one in terms of the geopolitical tension between the U.S. and North Korea. Equity valuations were turned upside down while the safe-havens won out big. Today’s positive U.S. economic data will bring opportunity as U.S. equities and the dollar digest the metrics.
We are keeping a close eye on the EUR/USD as it enters a key support area.
Here are a few of the more important US economic metrics from earlier:
Event Previous Projected Actual
Export Price Index (MoM, July) -0.2% 0.2% 0.4%
Import Price Index (MoM, July) -0.2% 0.1% 0.1%
Retail Sales (MoM, July) -0.2% 0.4% 0.6%
Retail Sales without Autos (MoM, July) -0.2% 0.3% 0.5%
As mentioned by my colleague Arslan earlier in the session, last week’s U.S./North Korea tension caused dramatic selling in the S&P500 and DJIA. However, yesterday’s trade has shown these markets to be resilient. The data this morning is largely positive, meaning more strength is likely during today’s U.S. session.
EUR/USD Key Levels Into Play
The EUR/USD has a made a move towards key support numbers. This week will likely test the validity of our long-term uptrend.
EUR/USD Daily Chart- Still Bullish?
As mentioned in the brief earlier from our leading analyst Skerdian, the EUR/USD has formidable support levels coming into the picture.
The post-data action has brought a few of my key technicals into play as well:
July/August 38% retracement 1.1680
Daily 13 day SMA 1.1693
Last Week’s low of 1.1688
Bottom Line: The EUR/USD’s long-term uptrend is undergoing a challenge. The continued positive metrics from the U.S. economy are testing the EUR/USD and giving us some great long entries.
For the U.S. session, I will be looking for intraday compression on the 30-Minute and 60-Minute charts around the 1.1680-1.1693 area to set up a long play. Keep a close eye on our fx leaders trading signals for trade ideas facing the EUR/USD.
As always, watch the money management and look for positive reward/risk situations.