US durable goods orders overview
The US Census Bureau is scheduled to release monthly durable goods orders data at 1230 GMT on Wednesday and consensus estimates point to a second consecutive month of declines. The headline number is expected to show a contraction of 1% in May and excluding transportation items, orders are anticipated to have increased by 0.5%.
Deviation impact on EUR/USD
Readers can find FX Street’s proprietary deviation impact map of the event below. As observed, the reaction is likely to be confined between 15 and 25 pips during the first 15-minutes in case of deviations from 0.6 to -1.0 and could extend up to 65-75 pips in the following 4-hours.
How could it affect EUR/USD?
Yohay Elam, FXStreet’s own Analyst explains: “1.1730 provided support to the pair on June 13th and capped the recovery on June 25th. 1.1850 that served as a high point on June 14th.Beyond this level, the round number of 1.2000 awaits.”
He further adds, “1.1610 served as support in late May and early June. The next cushion awaits at the June 15th and 19th lows of 1.1540 and stronger support is at 1.1510 which is the lowest level since July 2017. Even lower, 1.1480 is notable for serving as an important line last summer.”
Key Notes
“¢ EUR/USD: offered at 30-day MA, golden warning ahead of US durable goods report
“¢ US Durable Goods Orders preview: some noise in dollar’s rally
“¢ How to trade the US Durable Goods Orders with EUR/USD
About US durable goods orders
The Durable Goods Orders, released by the US Census Bureau, measures the cost of orders received by manufacturers for durable goods, which means goods planned to last for three years or more, such as motor vehicles and appliances. As those durable products often involve large investments they are sensitive to the US economic situation. The final figure shows the state of US production activity. Generally speaking, a high reading is bullish for the USD.
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