Dollar due for a correction?
Dear Traders,
Euro traders needed to be persistent and enter our long-entry several times, in order to gain the final profit. Before Draghi’s testimony in Brussels yesterday, euro bears tried to put pressure on the currency pair but finally failed when Draghi sounded slightly more optimistic. While he repeated the view that the European Central Bank is willing to bolster its bond-buying program if more stimulus is needed, he said that it is too early to judge whether expanding purchases would be appropriate. The ECB president said that more time is needed to determine whether risks to the economic outlook warrant a step-up in the ECB’s stimulus.
The euro reacted positively on his comments and tested the 1.12-level. Whether we will see more upward momentum, remains to be seen. With a break above 1.1220 we see chances that the euro could climb to 1.13.
The British Pound knows currently only one direction: Downwards. The support at 1.5220 proved to be stable for the time being. Bear in mind, that below 1.5220 there is no support until 1.5165. Above 1.5265 we may see a correction until 1.53 and 1.5340.
Today, the most important piece of economic data is coming from the USA with Durable Goods Orders, scheduled for release at 12:30 GMT. Furthermore, New Home Sales at 14:00 GMT and the speech of Fed-chair Janet Yellen at 21:00 GMT could have an impact on the U.S. dollar.
Interesting data from the eurozone and the U.K.:
8:00 EUR German IFO Index
8:30 UK Loans for House purchase
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