EUR/USD May Break Above Key Resistance Despite a Rise in US Retail Sales

United States – Retail Sales

On Monday, at GMT 12:30 p.m., the US Census Bureau will release the national month-over-month retail sales figure. It measures the changes in the total value of all sales made at the retail level in the country over the past month.

Retail sales data are considered by binary options traders to be the primary gauge of consumer spending and confidence. This is because when consumers are confident about their future financial situation, they tend to spend more.

Last month, the US retail sales value decreased by -0.1%. Analysts are expecting that this month, it would likely increase by 0.4%.

Eurozone – German ZEW Economic Sentiment

On Tuesday, at GMT 9:00 a.m., the Zentrum fur Europaische Wirtschaftsforschung (ZEW) will release its German economic sentiment index. It measures the level of a diffusion index based on surveying 275 German institutional investors and market analysts.

Since the professional investment community, investors and analysts have the latest data; their reflection about the economy tends to be the most accurate. Therefore, binary options investors consider the ZEW’s German economic sentiment index to be a leading indicator of the entire Eurozone economy. This is because the German economy is one the most important driving forces behind the Euro currency.

Last month, the ZEW German economic sentiment came out at 5.1. This month, analysts are expecting it to come out at -0.8.

EUR/USD Forecast

Since forming a small bullish pin bar on November 7, 2017, the EUR/USD remained bullish and climbed up by around 1,000 pips. However, after reaching the 1.2550 level, it found a strong resistance and started a retracement. On April 6, the EUR/USD reached near the uptrend line and found a support, then bounced towards the 1.2390 level, where it found a resistance.

The retail sales value in the United States may increase by 0.4% last month. On the other hand, analysts are expecting the German ZEW Economic Sentiment reading to decrease by -0.8 last month. Although the fundamentals suggest a bearish thesis, the ZEW Economic Sentiment carries more weight. We believe it would set a bullish fundamental outlook for the EUR/USD this week. Therefore, if the EUR/USD closes above the resistance near 1.2390, it would likely attract additional bullish momentum in the market.

Hence, US binary options traders should look out for trading opportunities above this major resistance level around 1.2390.

BTC/USD Forecast

The BTC/USD remained range bound since February and it mostly traded between 5,550 and 11,750 levels. Last week, the BTC/USD broke above the downtrend line, but soon found resistance near the 8475.00 level.

There have been a lot of negative news regarding central banks discouraging users from using cryptocurrencies. Nonetheless, news broke out last week that a Spanish bank called Santander recently launched a blockchain-based international payment service called “Santander One Pay FX.”

Although Santander One Pay FX is based on Ripple’s xCurrent technology, investors consider this new development a positive news for the blockchain technology that will have a bullish effect on all cryptocurrencies, including bitcoin. Therefore, if the BTC/USD breaks and closes above the 8475.00 level, it will likely attract additional bullish momentum in the market.

Hence, US bitcoin traders should look out for trading opportunities above this major resistance level around 8475.00.

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