EURUSD Forecast The EURUSD was traded lower earlier today, hit 1.4026. The bias is bearish in nearest term testing 1.4000 – 1.3960/50 support area. From a longer time frame outlook as you can see on my daily chart below, price still moves inside the bullish channel indicates the bullish scenario since the bullish run from 1.1875 remains intact but price is now in a bearish correction phase since the fall from 1.4939, testing the lower line of the bullish channel. W
USD Dollar (USD) – In forex trading, the U.S. Dollar traded mixed against most of the major currencies after Moody’s Investors Service and Standard & Poor’s put the U.S. economy under review for a credit downgrade Positive economic data was released from the U.S. where consumer prices, excluding food and energy, increased for a second month, cutting chances of additional stimulus from the Federal Reserve. Federal Reserve Chairman Bernanke told Congress that inflation has moved higher, boosting speculation that the Central Bank won’t take further steps to support the U.S. economy
Trading the News: Canada Retail Sales
What’s Expected:
Time of release: 05/20/2011 11:00 GMT, 7:00 EST
Primary Pair Impact: USDCAD
Expected: 0.9%
Previous: 0.4%
DailyFX Forecast: 0.0% to 0.6%
Why Is This Event Important:
Household spending in Canada is projected to increase another 0.9% in March, and the ongoing expansion in private consumption should spark a bullish reaction in the local currency as the recovery gathers pace. A
EUR/USD
The pair finished the session sharply lower as market participants continued to fret over the stability of the Eurozone following the release of the EU stress test results last Friday which did little to appease investor concerns. Going forward, the outlook remains bearish and there is a risk that the pair will move into a lower trading range, below the key 1.4000 level. In terms of upcoming economic releases, market participants will get to digest the latest ZEW survey, as well as government debt auction by the Spanish debt agency. Read more…