Labour Day Markets-DXY Potential Retrace EURUSD GBPUSD

This week the US and Canada will be having a holiday long weekend and having their labour day holiday. The US and Canadian dollar currency pairs will see lower than normal trading volume. Europe will be reporting a variety of medium volatility economic reports today and one to watch closely is EUR Retail Sales (MoM) (Jul) Forecast: 0.4% Previous: -1.2%. The yearly numbers (YoY) might also be worth watching to get a signal of how the European economy is doing from a fundamental perspective, for any longer term investors who are looking at a long term Euro buy at these levels, which might be appealing at 20 year lows. There will be no high volatility reports today for the EUR or US countries. Non US currencies (minus the Canadian dollar) may fundamentally benefit during the US holiday and can potentially see fundamental upside, currencies such as the pound sterling and the euro may benefit due to holiday spending and low US trading volume.

From a technical perspective the main currencies in the major currency basket seem quite neutral today, though the pound sterling has recently fallen oversold on the 4 hour RSI which might be worth watching today. The EURUSD currency pair has recently shown a buy signal on the 30 min default MACD with the 45 min and 1 hour charts approaching. Shorter term RSIs show an oversold state and it might be possibly to catch 30 pips long with medium risk. The 4 hour 5 day simple moving average sits near 0.99300 20 pips higher and the 50 day SMA sits near 0.99815. Target: price being equal to the 4hour 5 SMA, Stop: price being equal to the 4 hour 5 SMA. $EUR/USD
DXY could see further short to 109.688.

Ilyas Khan Top1 Markets