The participants of the financial markets wait for important releases from the United States. The reports on retail sales and the level of inflation will be announced today at 12:30.
Previously, the protocols from the last meeting of FOMC were published. Many Fed representatives think that one more interest rate increase may be needed this year, but the whole process may be slowed in case the inflation does not reach the necessary level. Though, the Central Bank officials are worried about low consumer prices in the US. The probability of tightening the monetary policy at the end of 2017 is at the 86.7% mark now. It’s a rather high level.
Yesterday, a positive statistics concerning the United States economy was published, and it supported USD. If today’s news will be the same optimistic, the demand for the US currency may grow further.
The technical pattern on EUR/USD
Support levels: 1.18200, 1.17750, 1.17000
Resistance levels: 1.18500, 1.18750
The ‘Head and shoulders’ pattern is being formed now. I can say that it’s a quite strong reversal formation. I don’t exclude an opportunity of appearing of a bearish sentiment on this currency pair.