EURUSD continues to trend
Gary Christie August 13, 2020 2:54 PM
Positive U.S. economic data put slight pressure on the EUR however the upside prevails.
The US Dollar was mixed against its major pairs on Thursday. On the U.S. economic data front, jobless claims fell by 228 thousand to 963 thousand in the week ending Aug 8th (1100K estimate) from 1186K in the prior week making it the first time Jobless claims have been below 1 million since the coronavirus pandemic began. Import prices gained 0.7% on month In July, above the 0.6% estimate compared to a gain of 1.4% in June.
On Friday, retail sales likely grew 2% on month in July from 7.5% in June. Industrial production is anticipated to gain 3% on month in July from a gain of 5.4% in June. Finally the University of Michigan Consumer Sentiment index is expected to decline to 71.9 in an August preliminary reading compared to 72.5 in the July final reading.
The Euro was bullish against all of its major pairs. In Europe, the German Federal Statistical Office has posted final readings of July CPI at -0.1% year, as expected. France's INSEE has reported 2Q jobless rate at 7.1% (vs 8.3% expected).
The Australian dollar was under pressure against all of its major pairs except for the NZD.
Looking at the chart, the EUR/USD continues to challenge the $1.1915 resistance area inside a short term consolidation zone. The pair remains supported by its 20-day moving average. As long as key support holds at the $1.1635 level which corresponds to the 61.8% Fibonacci level from the swing low of $1.1165 and swing high of $1.1915 we anticipate a continuation of the uptrend if price action can break the 1.1915 resistance level.
Source: GAIN Capital, TradingView
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