The price has increased today and looks determined to resume the bullish movement, could jump aggressively if the United States economic data will disappoint in the coming hours. The price is trading below the 1206.92 yesterday’s high, but he could touch this level if the USD will continue to depreciate versus its rivals, the USDX has dropped further today, signalling that the bears are still in control. We could have some volatility today on the major currency pair and on the Gold price because the US is to release high impact data later, we’ll see how the rate will react.
The United States Retail Sales could increase by 0.5% in December and could come better versus the 0.1% growth from November, while the Core Retail Sales could increase by 0.5% in December, more compared to the 0.2% increase from the last reading period. Moreover the PPI may increase by 0.1% in December, while the Core PPI is expected to increase by 0.3%, the greenback could receive a real support from the US economy if the figures will come in line with expectations or better. The US will publish other high impact data, so will be better to keep an eye on the economic calendar later.
The price has continued the upside movement and is very close to touch again the 150% Fibonacci line (ascending dotted line), which represents an important dynamic resistance, the rate has climbed above this obstacle in the yesterday’s trading session, but has failed to stay there. I want to remind you that the next upside target remains at the median line (ML) of the descending pitchfork, could climb above this upside obstacle if the US data will disappoint in the coming hours.
We could see a minor decrease only if the United States economic data will impress today and if will force the greenback to appreciate versus its major rivals, so you should be careful in this afternoon because the fundamental factors will lead the price, but remains to see the direction. We’ll have a larger rebound if the rate will jump and will stabilize above the median line (ML).