The EUR/USD pair is relatively calm early in another week of January. EUR/USD is trading at 1.1430; the “greenback” local strengthening slowed down. US markets are closed today because of Martin Luther King Jr. Day.
The statistics published earlier were rather weak and made the USD retreat. The Retail Sales in the US dropped 1.9% m/m in December against the expected reading of -0.1% m/m. The November reading was also revised downwards.
As a result, it’s been the first decline of the indicator in three months. One may think that the Christmas season started earlier. That’s why the December reading was disappointing. In addition to that, both manufacturers and retail chains revised their deliveries due to Omicron-related concerns.
The Industrial Production in the US was also below expectations – the indicator lost 0.1% m/m against the expected reading of +0.3% m/m. The indicator was influenced by the very same Omicron strain along with high inflation.
In the H4 chart, EUR/USD has finished another ascending wave at 1.1482; right now, it is correcting towards 1.1384 and may later start another growth with the short-term target at 1.1500.
After that, the instrument may correct to return to 1.1384 and form one more ascending structure with the target at 1.1543.
From the technical point of view, this scenario is confirmed by MACD Oscillator: its signal line is falling towards 0.
As we can see in the H1 chart, after falling and reaching the short-term correctional target at 1.1397, EUR/USD is forming a new ascending wave to test 1.1434 from below.
Later, the market may complete the correction by reaching 1.1385 and resume growing with the target at 1.1500.
From the technical point of view, this idea is confirmed by the Stochastic Oscillator: its signal line is moving above 80 and may soon resume falling towards 50.
Disclaimer: Any forecasts contained herein are based on the author’s particular opinion. This analysis may not be treated as trading advice. RoboForex bears no responsibility for trading results based on trading recommendations and reviews contained herein.