It's not even standing in the same place, but some kind of sitting. It's just no other way, the behavior of the single European currency, can not be called. This is despite the fact that sales of new homes in the United States declined by 0.7%, although they were supposed to increase by 1.1%. In fact, they decreased from 738 thousand to 733 thousand. But apparently, the calm reaction of the market is due to the revision of previous data on sales of new homes, from -0.7% to + 4.5%. Thus, the current recession was not so terrible.
Today, there is hope for at least some recovery, but not because of the publication of preliminary data on US GDP. It's just that the second assessment should coincide with the first, which showed a slowdown in economic growth from 2.3% to 2.0%. This result has long been taken into account by the market. However, data on orders for durable goods, which may be reduced by another 0.8%, will clearly attract the attention of investors. At the same time, the previous data was reviewed for the worse, and in September, the decline in orders for durable goods was not 1.1% but 1.2%. And if forecasts for October are confirmed, then this will show that orders are being reduced for the second month in a row. Now, do not forget that industrial production in the United States is also declining, and if the orders do not increase, then do not rely on the growth of industry.
Durable Goods Orders (United States):
In terms of technical analysis, we see that the EUR/USD currency pair is still concentrated within the psychological level of 1.1000, as we predicted in previous articles. The movement with a narrow amplitude reflects a kind of indecision of market participants, and pressure from the control level does not allow quotes to go beyond the given framework. Thus, the movement in the floating borders of 1.1000 / 1.1025 is preserved now, which fuels the interest of speculators who will try to ride on local price spikes.
In terms of a general review of the trading chart, we see a recovery structure, with respect to an elongated correction.
It is likely to assume that the psychological level of 1.1000 will continue to exert pressure on the quote, which will lead to the further formation of a narrow corridor. The tactics of the work are considered according to the "Breakdown & Rebound" method relative to the control level of 1.1000, where the repetition of the last bounce is considered with a greater degree of probability.
Concretizing all of the above into trading signals:
- Long positions are considered in case of price fixing higher than 1.1035, not a puncture shadow.
- Short positions are considered in case of fixing the price lower than 1.0990, not a puncture shadow.
From the point of view of a comprehensive indicator analysis, we see that indicators unanimously reflect downward interest at the moment, with respect to all the main time intervals.
