The euro closed 0.25%, higher at 1.1813 on Thursday, August 13. The EURUSD pair climbed to 1.1864 during the European trading session, then turned south during the North American session amid rising US bond yields in tandem with strength in the US dollar. The bulls were not even helped by an uptick in gold as investors took profit on long positions from the 112th Gann level.
12:00 Eurozone: Q2 GDP, unemployment rate and trade balance (June)
15:30 US: retail sales (July), Q2 nonfarm productivity and Q2 unit labor costs
16:15 US: industrial production (July)
17:00 US: business inventories (June)
17:00 US: Michigan consumer sentiment and business inventories (June)
20:00 US: Baker Hughes weekly oil rig count
Our expectations were fully justified yesterday. The price rallied to the 112th degree before dipping below 1.1805. Pressure on the euro picked up following an 11-hour consolidation. The pair could encounter strong support in the range of 1.1770-1.1780. Should EURUSD fail to hold this range, we expect the pair to fall back to 1.1725. Furthermore, if the bears can muster a pullback to 1.1725, we see a heightened risk of a move below 1.1600.
The Eurozone will publish 2Q GDP at 09:00 GMT. The single currency is now likely on a downward trajectory ahead of this key release. A sharp rebound of the 1.1790 mark would likely lock the pair into a side trend until the close of Friday’s trading session.