U.S. Economic Metrics Are Out, EUR/USD Nearing Robust Support Levels

Posted Tuesday, August 15, 2017 by
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.


Hard Data

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 DailyEUR/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.

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