The EUR/USD pair yesterday ended the day near its high, around the 61.8% retracement of the latest bullish run up to 1.1713, and the 1 hour chart shows that the technical indicators are giving signs of exhaustion in overbought territory, whilst the price has managed to advance well above its moving averages.
In the 4 hours chart, the technical indicators have bounced from their mid-lines and maintain their bullish slopes, whilst the 20 SMA heads slightly higher around the 1.1190 level. September high at 1.1331 is now the immediate resistance, followed by the 50% retracement of the same rally at 1.1365.
Poor US data triggered a dollar sell-off during the American afternoon, with the EUR/USD pair reaching 1.1294 a fresh weekly high.
US wholesale inventories decreased by 0.1%, while wholesale sales dropped 0.3% in July. Also, import prices declined 1.8% in August following a 0.9% drop the previous month, mostly due to lower fuel prices.
Prices exports also fell in by 1.4% a 0.4% decline in the previous month. Weekly unemployment claims edged at 275K as expected. This data is hardly able to trigger a 100 pips movement as it did this Thursday, but as FED’s meeting looms, uncertainty weighs, resulting in crazy spikes either side of the board.