2024-03-14 • Updated
Ahead of the release of US February Retail Sales data, the US Dollar (USD) is showing a modest recovery. Analysts at BBH assess the potential impact of the upcoming data on the USD. A soft reading in spending could prompt another downward correction in the USD, as it might indicate a weakening consumer sentiment. Market expectations suggest a rebound in Retail Sales by 0.8% month-over-month (MoM) in February, following a 0.8% decline in January. Additionally, the Control Group Retail Sales, which exclude certain categories and feed into GDP calculations, are expected to rise by 0.4% in February after a 0.4% decline in the previous month. A robust performance in US consumer spending could dampen expectations of Fed funds rate cuts and bolster the USD, while any signs of spending struggling under higher interest rates may lead to a downside correction in the currency.
The 1-hour timeframe chart on USDCAD is currently showing signs of a likely reversal. However, the fact that the price action has failed to break the previous high, or the trendline resistance could indicate a continuation of the bearish pressure in the meantime.
Analyst’s Expectations:
Direction: Bearish
Target: 1.34501
Invalidation: 1.34957
There are visible signs of consolidation on the 1-hour timeframe chart of NZDUSD. The wedge pattern is supported even further by the presence of a second trendline support, which aligns perfectly with the 200-period moving average. As a result of these confluences, my sentiment on NZDUSD is bullish.
Analyst’s Expectations:
Direction: Bullish
Target: 0.61922
Invalidation: 0.61476
USDJPY has had a long streak of bearish momentum for weeks now with the most recent high remaining unbroken as yet. Considering the presence of a trendline resistance, Fibonacci retracement level, and the bearish array of the moving averages, I stand convinced that the bearish price action may continue.
Analyst’s Expectations:
Direction: Bearish
Target: 147.403
Invalidation: 148.206
The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.
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Hello again my friends, it’s time for another episode of “What to Trade,” this time, for the month of April. As usual, I present to you some of my most anticipated trade ideas for the month of April, according to my technical analysis style. I therefore encourage you to do your due diligence, as always, and manage your risks appropriately.
Bearish scenario: Sell below 1.0820 / 1.0841... Bullish scenario: Buy above 1.0827...
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