The market is moving sideways ahead of Fed Chairman Jerome Powell's speech tomorrow. Investors are awaiting some clarity from Powell as to the pace of further rate hikes. The release of data on US durable goods orders had no effect on the market. The figures remained unchanged, well below market expectations of a 0,8% increase. The reading for the previous month was upwardly revised to 2.2% from 1.9%.
United States Durable Goods Orders:
Weekly jobless claims data to be released today is unlikely to somehow affect the market either. Initial claims should increase by 17K. At the same time, continuing claims were downwardly revised. They are now estimated to show a 1K drop instead of a 5K rise.
United States Continuing Jobless Claims:
Investors are not ready to take risks and prefer to wait for the Fed chairman's speech. Therefore, the market is likely to stay flat until tomorrow evening.
EUR/USD is hovering in the 0.9900/1.0000 range for the second day. The market is still bearish. Otherwise, the current sideways movement would have turned into a full-fledged correction.
The RSI, moving sideways, has left the oversold zone on the 4-hour chart. As a result, the indicator reached 50, in line with the price level of 1.0000. If the indicator is firm above the middle line, it will signal the beginning of a corrective phase.
The Alligator's MAs are still below the parity level of 1.0000 on the 4-hour chart. The sell signal made by the Alligator indicator is still relevant.
Outlook
Against the current backdrop, a 100 pips sideways movement is temporary. It can be assumed that it will end with an impulse, leading to fresh speculative activity in the market.
In terms of complex indicator analysis, there is a buy signal for short-term and intraday trading as the price has hit parity. In the medium term, technical indicators signal to sell the instrument, which is in line with the general trend.
