Macroeconomic statistics did not only hinder the long-awaited correction, but also exacerbated the overbought condition of the dollar. Reportedly, orders for durable goods increased by 0.2%, instead of decreasing by 1.4%. This prompted dollar to rise, while euro and pound continued to decline.
But even though dollar already became overbought, a correction could not be triggered very easily. At most, there will be a stagnation, as today only contains the report on US jobless claims. Forecasts say initial claims will increase by 4,000, while the number of continuing claims will decrease by 2,000. Such insignificant changes will unlikely impact the market. The final US GDP data will also not affect the dynamics much because they may confirm the preliminary estimates already factored into the market.
EUR/USD hit the support level of 1.0500, where the volume of short positions slightly decreased. This, combined with the overbought condition of dollar, suggests a buy signal, which could lead to a rebound. However, they may be ignored by speculators.
GBP/USD remains below 1.2150, indicating the possibility of a further decline. If the momentum continues, the market could potentially move towards the psychological level of 1.2000
