Talking Points:
– EUR/USD faces retest of daily 8-EMA – hasn’t closed above since October 22.
– USDOLLAR hasn’t seen two closes below its daily 8-EMA since October 19-20.
– See the November forex seasonality report that forecasts US Dollar strength.
If there were a tandem of data releases – outside of the NFP data dump – that could carry significant weight for the US Dollar, it would be today’s retail sales and consumer confidence releases. Both reports offer insight into the heart and soul – and wallet – of the American consumer; which is important, given that consumption accounts for north of 70% of US GDP.
Accordingly, with the USDOLLAR Index at a critical crossroads – it is threatening to put in two consecutive closes below its daily 8-EMA for the first time since October 19-20 – this data serves as an opportunity to reaffirm the market’s belief that the Federal Reserve has enough positive data to hike rates next month.
See the video above for a review of this morning’s Euro-Zone GDP data, as well as technical considerations in EUR/USD, EUR/JPY, USD/JPY, GBP/USD, AUD/USD, and the USDOLLAR Index.
Read more: Important Retest of Daily 8-EMA Unfolds for the USDOLLAR Index
— Written by Christopher Vecchio, Currency Strategist
To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com
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Source: Daily fx