The US released its Core Retail Sales excluding automobiles. MoM reading is 0.2%, which is lower than the 0.4% forecast. The country also reported slightly better than expected Retail Sales, 0.3% ahead of the expected 0.2%. Data on Industrial Production followed was also worse than expected: the result of -0.8% was below the forecast of -0.4%.
Yesterday afternoon we saw more Initial Jobless Claims than expected. The result of 225K was ahead of 215K. Later in the evening, Crude Oil inventories came in at 2.219M, above the forecasted 1.649M.
Fed Chair Powell spoke yesterday evening and reduced the need for further monetary easing in the near term again.
EUR/USD on a Daily TF is trading bullish. Yesterday the price hit our target at 61.8% Fibo and dropped to 1.09891 before trading up. The price is currently above the 50% Fibo level, slightly below 9EMA, trading around 1.10368. What we are having now resembles a morning star pattern. The Bearish MACD histogram is decreasing. Moving Averages are moving sideways. The RSI is within the range at 46.
Resistance: R1 38.2% Fibo 1.10647, R2 23.6% Fibo 1.11086.
Support: S1 (area) 1.10000 – 1. 09891, S2 1.09717, S3 1.09434.
Today Japan released its Industrial Production figures. The reading of 1.7% is ahead of the forecasted 1.4%.
USD/JPY on a Daily TF, the price broke below our trend line but failed to break below 50% Fibo and 50EMA. The price is now retesting the trend line as resistance and is currently trading around 108.725.
Resistance: R1 61.8% Fibo 109.362, R2 109.620, R3 110.095.
Support: S1 50EMA 108.266, S2 107.955, S3 38.2% Fibo 107.484.
Great Britain also released data on Retail Sales yesterday. The MoM reading was -0.3, which is below the forecast of 0.2% growth.
GBP/USD on a Daily TF continues to trade sideways around 1.28857 as we wait for UK election updates. Ichimoku Cloud Bias is bullish, and yesterday 50EMA crossed 200EMA up.
Resistance: R1 1.29418, R2 1.30125, R3 1.30764
Support: S1 23.6% Fibo 1.27637, S2 200EMA 1.26690, S3 38.2% Fibo 1.26098