Headlines the Economic Calendar on Wednesday
Canada Retail Sales Data: The Canada Retail Sales are expected to come out at 1.0% m/m in March, while core retail sales are expected to rise to 0.9% from 0.6%. A higher than expected reading should be taken as positive for the Canadian Dollar.
US Crude Oil Inventories: US Crude oil stocks are expected to decline by -0.599M this week. Note that oil stocks rise by 5.431M barrels in last week.
FOMC Meeting Minutes: The Federal Reserve will release the minutes from its policy meeting today. At their last meeting, the Federal Reserve left interest rates unchanged. The Fed indicated that no immediate need to cut interest rates. Also, the US central bank continued to highlight the strength in the labor market. The FOMC Meeting Minutes may give a more detailed about Fed Outlook for 2019.
Technical Analysis
EUR/USD: The EUR/USD pair moved down slightly in the Asian Session. Ahead of the FOMC Meeting Minutes, if the fall continues, the daily support level can be seen at 1.1103. On the other hand, if the price moves up, we will watch 1.1219 as a daily resistance level.
Support: 1.1103 - 1.0980 - 1.0837
Resistance: 1.1219 - 1.1285 - 1.1355
GBP/USD: The British pound gave up all gains versus the US Dollar after U.K. Prime Minister Theresa May presented a “new” Brexit deal. Ahead of UK CPI Inflation, if the selling pressure continues below 1.2723, we will follow the daily support level at 1.2668. In contrast, if the pair rises above 1.2723, the next resistance level will be placed at 1.2807.
Support: 1.2668 - 1.2606 - 1.2528
Resistance: 1.2723 - 1.2807 - 1.2871
USD/JPY: The USD/JPY pair moved up above the main level of 110.35 yesterday. As long as the pair stays above 110.35, on a four hourly basis, the US Dollar may gain more value versus the yen and we will see the daily resistance level at 111.18. On the other hand, if the price falls below 110.35, the next support level can be seen at 109.57.
Support: 110.35 - 109.57 - 108.95
Resistance: 111.18 - 111.85 - 112.37
Crude oil: The Crude Oil Price showed a downward movement yesterday. We will focus on US Crude Oil Inventories data today. The price is currently trading below the key level of 62.80. As long as the price stays below that level on a four hourly basis, the downward movement may continue. At this point, we will see the daily support level at 61.57. On the other hand, If the price goes beyond 62.80, the next resistance level is holding at 64.07.
Support: 61.57 - 60.38 - 59.01
Resistance: 62.80 - 64.07 - 65.31
EUR/GBP: The EUR/GBP pair has been rising for two and a half weeks. It is currently trading above the 0.8779 main support level. As long as the pair stays above 0.8779 on a four hourly basis, the upward movement may gain more momentum. In this case, we will see the daily resistance level at 0.8862. In contrast, if the pair falls below 0.8779, the next support level can be seen at 0.8702.
Support: 0.8779 - 0.8702 - 0.8619
Resistance: 0.8862 - 0.8946 - 0.9024
Dow Jones 30 Futures: The DOW30 futures index is now trading above the 25821 daily support level. If the index is able to stay above 25821 on a daily basis, we might see an upward movement. In this case, the resistance level can be found in 26062. On the other hand, if the price drops below 25821, we will follow 25560 as a key support level.
Support: 25821 - 25560 - 25218
Resistance: 26062 - 26335 - 26596