Technical analysis of currencies and an overview of the EUR/USD pair May 12, 2017

Currency technical analysis

technical analysis of currencies; Calm dominated the US dollar’s trading during trading today, Friday, in the European session, to trade near its highest levels in three weeks against many other major currencies, and this comes before the announcement of a set of important economic data that will reflect the performance of the US economy during the second quarter of this year, as well. The Reserve Bank will base its decision to raise interest rates during its next meeting on the results of these data, and a number of Reserve Bank members are scheduled to speak later in the day.

At exactly 11:55 GMT, the US dollar index traded at 99.55 points, from the opening level at 99.52 points. The highest level was recorded at 99.57 points, while the lowest level was recorded at 99.43 points.

At the close of trading yesterday, the US dollar index rose to reap gains of less than 0.1% for the fourth consecutive day, reaching its highest level in three weeks at 99.76 points, reflecting the increasing demand for the US dollar against other major currencies. This support comes from the positive data announced Yesterday, the US economy exceeded expectations, as the producer price index for the month of April rose to exceed expectations, while the weekly jobless claims fell, which would raise the chances of raising interest rates during the Reserve Bank meeting next month.

The US economy is expected to release a set of important data that will reflect the state of the US economy during the second quarter of this year, and a number of Reserve Bank members will make several important statements that will inevitably affect the prospects of raising interest rates.

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The data that will be announced is the consumer price index during the month of April, and it is expected that the index will rise by 0.3% compared to the month of March, which recorded a decrease by 0.3%. 0.2% compared to the previous rate, which recorded a decrease of 0.1%.

At the same time, the US economy will publish its data for retail sales for the month of April, amid expectations that sales will rise by 0.6% compared to March, which recorded a decrease by 0.2%, and retail sales will be announced, excluding food and fuel prices, amid expectations that the index will rise. By 0.5% compared to the previous record, which recorded a rise of 0.0%.

The preliminary reading of the University of Michigan's consumer confidence index for the month of May will be released amid expectations that it will reach the level of 97.0 points, which is the same as the final reading during the month of April.

In terms of statements, it is expected that the President of the Reserve Bank of Chicago, “Charles Evans”, will speak at a global conference in Ireland about global developments and developments in the global economy, and the President of the Reserve Bank in Philadelphia, “Patrick Harker” will talk about the challenges and economic aspirations at Dry Castle University in Philadelphia. .

Technical analysis of currencies and a look at the EUR/USD trading EURUSD

The euro-dollar pair is trading at the level of 1.0920, as the price rebounded towards the upside, targeting the Fibo 23 line in conjunction with the presence of the Fibo line 23, as shown in the graphic

Trading is now taking place at the highest level of the average moving indicator line, and both Stochastic and MACD indicator are showing a positive crossover towards the bullish trend on the four-hour time frame.

Therefore, the price is expected to continue the bullish trend to target 1.0950 in the near term

Mohamed Abdel Khaleq

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