The “greenback” got some significant support from the latest report on the retail sales in the USA, which showed 0.6% m/m in June after being -1.7% m/m the month before and against the expected reading of -0.4% m/m. The Core Retail Sales report showed 1.3% m/m against market expectations of 0.4% m/m. Despite the fact that Americans are currently spending more money on services, the demand for goods remains quite high.
The preliminary report on the Consumer Sentiment from the University of Michigan disappointed but was barely noticed by investors. Nevertheless, the indicator dropped to 80.0 points in July after being 85.5 points in the previous months, although it was expected to reach 86.5 points.
In the H4 chart, EUR/USD is forming another descending wave with the target at 1.1725. After testing this level, the instrument may continue falling. From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is moving below 0, thus indicating that the descending wave continues.
As we can see in the H1 chart, the asset is also trading downwards and may soon reach 1.1750. Later, the market may form a new correction and then resume trading downwards with the target at 1.1725. From the technical point of view, this scenario is confirmed by the Stochastic Oscillator: its signal line is steadily moving downwards below 25.
By Dmitriy Gurkovskiy, Chief Analyst at RoboForex
Any forecasts contained herein are based on the author’s 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.