Today, market participants will pay attention to the publication (at 15:00 GMT) of the preliminary index of consumer confidence from the University of Michigan. This indicator reflects the confidence of American consumers in the economic development of the country.
A high level indicates economic growth, while a low level indicates stagnation. Previous indicator values: 67.2 in January 2022, 70.6 in December, 67.4 in November, 71.7 in October, 72.8 in September 2021. An increase in the indicator will strengthen the USD, and a decrease in the value will weaken the dollar. The data shows uneven recovery of this indicator, which is negative for the USD. Data worse than previous values may have a negative impact on the dollar in the short term. However, the relative growth of the indicator (according to the forecast, the value of 67.5 is expected) should support the dollar quotes, including in the EUR/USD pair, which, at the time of publication of this article, is trading near 1.1390, slightly above the important short-term support level of 1.1386. Its breakdown will be a signal for the resumption of short positions.
Support levels: 1.1386, 1.1360, 1.1345, 1.1285, 1.1235, 1.1195, 1.1174, 1.1100, 1.1000, 1.0900, 1.0730
Resistance levels: 1.1440, 1.1480, 1.1500, 1.1560, 1.1590
Trading Recommendations
EUR/USD: Sell by market. Stop Loss 1.1450. Take-Profit 1.1360, 1.1345, 1.1285, 1.1235, 1.1195, 1.1174, 1.1100, 1.1000, 1.0900, 1.0730
Buy Stop 1.1450. Stop Loss 1.1365. Take-Profit 1.1480, 1.1500, 1.1560, 1.1590
