The US released data on Gross Domestic Product Growth Rate today; the result came out worse than expected, with a contraction on a quarterly basis of -0.9%; from a technical definition, this would mean that the US is in recession, although the US government disputes the claim by providing that the economy is growing and has a strong labor market. Continuing jobless claims were released earlier today and had a positive outcome.
Japan will announce Consumer Confidence towards the end of the Friday session; experts anticipate a better result than the previous month with a 33, strengthening the Yen as it indicates economic growth.
The US will also have data released during the Friday session; Michigan Consumer Sentiment is expected to improve from 50 to 51.1, Personal Spending MoM is also likely to increase from 0.2% to 0.9%, while Personal Income MoM is likely to stay at 0.5%
High volatility is likely to continue in the short to medium term as the Bollinger bands are expanding, suggesting that the price could move aggressively in the upcoming trading sessions.
The breakout on the rising wedge is now completed, and the pair is likely to continue moving downwards as the trend has been reversed; the price trades below the short and long-term moving averages; however, the price could find strong support at the lower Bollinger band close to $134.19.
The relative strength index is 41%, allowing the pair to continue the downtrend for the short term; we could see a price correction once it enters the oversold status. Our parabolic SAR indicator strengthens the short signals.
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