US economic data has once again proved to be a market mover in all the wrong ways for the dollar. April CPI came out weaker than expected at 0.3% month-on-month, and other numbers underscored a potential soft landing in the making as Retail Sales were flat and New York Area manufacturing dipped further. Ahead we have little actual hard macroeconomic data for the Eurozone though the ECB Financial Stability Review at 0800GMT and EU Economic Forecasts are worth watching just in case there are surprises.
Resistance
- 1.09812 – Daily High 3/08
- 1.09426 – Daily High 3/21
- 1.09007 – Intraday Low/High
Support
- 1.08690 – Intraday High
- 1.08356 – Intraday Consolidation Resistance
- 1.08125 – Intraday Consolidation Floor
Wednesday’s rally gave us a clear push through the bearish trend line from December 28 closing around the day’s high. We have oscillators pushing to overbought levels and see little resistance of significance until 1.09426. We do not want to go against a freight train. Look for entry points for longs, preferably a buy on dips with long hourly tails. Alternatively look for prices to consolidate intraday then jump long on a clear break of such a consolidation.
