The dollar slightly strengthened on Tuesday, with the release of inflation data for the United States, but investors found the data not sufficient enough for a more decisive offensive.
As a result, the euro showed a decline of only five points by the close of the day. The basic consumer price index added 0.1% for December against the expected 0.2%, while maintaining an annual value of 2.3%.
On the daily chart, the signal line of the Marlin oscillator moves sideways directly along the boundary of the bullish and bearish trends, which creates the risk of continued correctional growth to the Fibonacci level of 110.0% at the price of 1.1155. If the potential is not realized, a planned decrease to the Fibonacci level of 123.6% will follow at the price of 1.1073, where the MACD indicator line also passes.
On the four-hour chart, a price reversal from the MACD line was noted, but not fully realized. At the moment, the price is already above the balance line (red moving) and the Marlin oscillator is holding in the growth zone, which shows the price’s intention to once again attack the MACD line. Now the condition for a further decrease is overcoming the price of yesterday’s low.
In general, the situation is neutral and the euro may cheer up today’s data on industrial production for November (forecast 0.3%), but tomorrow retail sales in the US for December will be released, the forecast for which is 0.5% for basic sales and 0.3% for general . It is likely that investors are planning more active actions for this data.
Origin: InstaForex
