EUR/USD is continuing its slide and dipping its feet in the waters under the 1.38 line. It already fell from the highs after the soft German inflation data and waited in the lower 1.38 – 1.3830 range.
German retail sales dropped by 0.7%, slightly worse than a drop of 0.6% expected, but this release is only the appetizer.
In the euro-zone, all eyes are on the preliminary inflation numbers for April. Headline inflation is predicted to rise to 0.8% and core inflation to 1%. See how to trade the important figure with EUR/USD. Also Spanish GDP, French consumer spending and German employment will be watched.
Across the Atlantic, the ADP NFP for April will provide a hint towards the Non-Farm Payrolls. A gain of around 200K jobs is expected. Immediately afterwards, the first release of Q1 GDP in the US is set to rock the boat and expectations are low: only 1.2% annual.
Last but not least, the Fed decision, which is expected to result in a fourth QE tapering will close the busy day. Follow a live coverage of the event.
Will we finally see the pair get out of the range? Volatility is certainly needed in the markets.
Here is the chart:
1.3780 provides support, followed by 1.3740. Resistance is at 1.3830 followed by 1.3860. For more, see the EURUSD prediction.
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