The single European currency traded sideways, but yesterday it remained steady. Moreover, the limits of the corridor were quite narrow. It is not surprising as the macroeconomic calendar was quite empty. Unlike today. Though after the correctional movement, further weakening of the single European currency is expected. But apparently, the time is not right for it. Currently, durable goods orders are published in the United States and they are expected to decline by -0.2%. This is the best case scenario. There is reason to believe that orders may fall to -0.3%. After all, orders reflect the future dynamics of retail sales, which is the best indicator of consumer activity. It is the main driver of US economic growth. Decrease in orders is an indication of a high probability of reduction in retail sales. Thus, the single European currency has a good chance to go over the upper limit of the corridor outlined yesterday.
Durable Goods Orders (United States):
The corrective movement managed to partially restore the euro's positions last week.The Fibonacci level of 38.2 is aimed as resistance for buyers and the price stagnated at 1.1726/1.1765.
Technical indicator RSI confirms the stagnation stage, moving towards the level of 50.
Expectations and prospects:
In this case, we may assume that the amplitude movement within the limits 1.1726/1.1765 will remain in the market for some time. Now it is time to prepare for the coming acceleration, using the breaking method of this or that accumulation limit.
We consider the buy positions on the currency pair after the price remains above 1.1765. Sell positions are considered after the price remains below 1.3725.
Complex indicator analysis gives a variable signal from short-term and intraday periods by the stagnation stage. Technical tools at medium period signal a sell, due to the downward cycle from early June.
