EUR/USD Heading Away from Its Lows
By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
EUR/USD experienced a significant correction during the late last week, and is keeping away from its local lows on Monday morning. The pair has recovered from its failure in early May and is ready for consolidation. This week, a good deal of macroeconomic events is being released, and EUR/USD is surely going to react to it.
As such, the April retail sales are coming on Tue, May 15, in the US. The consensus is that the figure is going to increase by 0.4% MoM, compared to 0.6% in March, while the sales excluding automotive industry are going to get boosted by 0.5% against 0.2%.
April retail sales are quite important for getting an idea of the economic growth after lackluster performance early this year. If the March trend continues, this will show the major things are under control, and the Fed will be able to plan rate hikes moving forward.
Speaking of the Fed interest rates, one should bear in mind that Loretta Meister, the FRB of Cleveland president, is speaking today. She is famous for being hawkish regarding rate hikes, unlike most of her colleagues.
The euro will receive a lot of economic news this week, too. As such, the preliminary Eurozone GDP report is being released as soon as tomorrow. The analysts expect it to go up by 0.4% QoQ, and the market is not going to react very actively in case these expectations are met. In Q4 2017, the EU economy growth was +0.6% QoQ. As usual, the better the data, the better for the euro, but in this particular case, no special optimism is expected.
On D1, the EUR/USD chart shows the buyers are pushing the pair to 1.1985, from where they can take 1.2000. Currently, the bulls still have some energy, which may allow them to make the euro stronger in the course of this session. Key support levels, meanwhile, are located at 1.1965, 1,1955, and 1.1940.
Any forecasts contained herein are based on the authors’ particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.
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