Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

U.S. Dollar: Bullish Pressure

By Dmitriy GurkovskiyForexOct 18, 2021 08:22AM ET
U.S. Dollar: Bullish Pressure
By Dmitriy Gurkovskiy   |  Oct 18, 2021 08:22AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

The EUR/USD pair trades near 1.1575 at the time of writing, which could mean that the greenback has bullish momentum. Last Friday’s US retail sales data for September turned out to be more impressive than expected.

The indicator added 0.7% MoM after expanding by 0.9% MoM in August (revised upwards) against the expected reading of -0.2% MoM. In total, the indicator added 14.9% YoY July through September.

That’s an outstanding result. This will give the Fed a reason to begin tapering as early as November, as investors eagerly await an announcement regarding the same.

Technical Outlook

In the 4-hour chart, the EUR/USD pair has broken towards the downside after completing an ascending impulse at 1.1622, and a descending structure towards 1.1585.

The pair may continue the correction to reach 1.1545 before rebounding towards 1.1585, forming a new consolidation range between these two levels.

If the price breaks to the upside, the pair may break 1.1622 and continue to reach 1.1717. If it breaks to the downside, it could descend towards 1.1530 or 1.1450.

From the technical point of view, the MACD oscillator confirms this scenario. its signal line is steadily falling towards 0. I line expected to break this level and continue falling towards new lows.

EUR/USD 4-hour chart.
EUR/USD 4-hour chart.

As we can see in the 1-hour chart, after rebounding from 1.1616 to the downside, EUR/USD has continued the third correctional wave. The pair has already broken 1.1585 and may continue falling with the short-term target at 1.1555.

After that, the instrument may resume trading upwards to test 1.1585 and then start a new decline to complete the correction at 1.1545.

From the technical point of view, the Stochastic oscillator confirms this. Its signal line is moving below 20. Later, the line is expected to grow towards 50. A rebound from that line may lead to another decline towards 20.

EUR/USD 1-hour chart.
EUR/USD 1-hour chart.

U.S. Dollar: Bullish Pressure

Related Articles

U.S. Dollar: Bullish Pressure

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email