The currency pair is trading in the red right now and tries to retreat a little after the yesterday’s amazing rally. Remains to see what will happen later as the United States is to release important economic data. The fundamental factors will drive the rate so you should be very careful not to suffer a heavy loss.
We may have some volatility in the US trading session, the USD needs a helping hand from the United States economy, but remains to see if will receive one.
The Building Permits could decrease from 1.23M to 1.22M in the previous month, while the Current Account is expected to increase from -117B to -115B in the Second Quarter. Moreover, the Housing Starts may increase to 1.17M, from 1.16M, while the Import Prices could increase by 0.4%, beating the 0.1% growth in the former reading period.
Price dropped a little today, but continues to pressure the lower median line (LML) of the red descending pitchfork and the median line (ml) of the blue descending pitchfork. Only a valid breakout above these levels will confirm a further increase. However, a rejection from the confluence area formed at the intersection between the LML with the median line (ml) will send the rate towards the 150% Fibonacci line (down sloping red line). I’ve drawn a minor blue ascending pitchfork hoping that I’ll catch a broader upside movement, technically is expected to reach the median line (ml), but a disappointment from the US later will send the rate tumbling.
