Prepare for another round of economic news from the US

Are You Prepared for Another Round of Market-Moving Data?

Since the start of the 2007-2008 recession, the housing situation has been scrutinized by analysts, trying to predict when it is exactly going to recuperate. In addition, due to the Fed’s recent policies, such as maintaining interest rates at a low level of 0.25%, many have now become worried that the enormous amount of Dollars that were pumped into the system will lead to inflationary problems. Should this occur, the Fed might not have any other option than to increase interest rates – a situation which could help strengthen the U.S Dollar.

Investor’s eyes will focus on the economic calendar tomorrow as the U.S will release important data and shed some light on the economy’s status. Housing starts, Building Permits and the closely watched CPI figure are all scheduled to be released, events that could spark major volatility on the various currency pairs, if the results come out better than expected.

Technical Analysis – A Possible Trade Opportunity

The EUR/USD has been trading within an uptrend for more than 8 months, each time bouncing off its major trend line. Even though global equity markets continued higher at the start of the week, the EUR/USD didn’t break to higher levels. To date the Euro is stuck between minor trend line resistance and major trend line support. Tomorrow’s data could send this pair in either direction, presenting a trading opportunity upon the break of either trend line.

 

 

 

 

 

 

 

 

Analysts Expectations for Wednesday 18^th November

Trading Tip

Use the trend line to time your entry and don’t forget to use a stop loss

 

To keep regularly informed about this and other important news releases visit eToro.net to keep a track on all the daily and weekly news.

Furthermore, if you like to learn to perform your own Forex analysis and spot valuable trading opportunities as they develop, simply click here to take advantage of our unique e-trading course.

 

Successful Trading!

The eToro Team

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