Will U.S. Retail Sales Spur The Demand For Dollars?
The U.S. dollar strengthened against its major counterparts Tuesday but bearish movement was limited to short-term technical support levels.
What is important today?
U.S. retail sales are due for release at 13:30 UTC which will have an impact on the U.S. dollar.
At 19:00 UTC FOMC minutes are due for release but retail sales are expected to garner more attention.
The cable finally corrected some of its gains and found a short-term support at 1.3860. A break below 1.3860 could pave the way for a test of 1.3840-30. A lower crucial support is however still seen around 1.3760. For bullish momentum to accelerate we will need to see a renewed break above 1.3915.
The euro pulled back from its current resistance zone around 1.2170 and is currently trading near its short-term support at 1.2080. If 1.2080 breaks, a next lower target will be at 1.2050. Below 1.2030 we anticipate further losses towards 1.1970. Bulls in this pair should wait for a sustained break above 1.2175 in order to anticipate further gains.
We see the index remaining above 14000 and as long as this support remains intact, we will focus on a break above 14140. For the index to post further losses, traders should watch out for prices below 13980 and further below 13900. A lower support is seen at around 13800 whereas a resistance remains intact at 14200.
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