US durable goods orders overview

Wednesday's US economic docket highlights the release of Durable Goods Orders data for April. The US Census Bureau will publish the monthly report at 12:30 GMT and is expected to show that headline orders rose 0.6% during the reported month as compared to the 1.1% growth reported in March. Orders excluding transportation items, which tend to have a broader impact, are also anticipated to have increased by 0.6% in April, down from a 1.4% increase in the previous month.

How could it affect EUR/USD?

A surprisingly stronger than expected readings should allow the US dollar to build on its solid rebound from a nearly one-month low touched the previous day. Conversely, disappointing data will add to concerns about softening economic growth and force investors to scale back expectations for a more aggressive policy tightening by the Fed. That said, any immediate market reaction is more likely to be short-lived ahead of the FOMC monetary policy meeting minutes, scheduled for release later during the US session.

Eren Sengezer, Editor at FXStreet, outlined important technical levels to trade the EUR/USD pair: “In case Tuesday's monthly high at 1.0750 is taken as the end-point of the uptrend that started on May 13, the Fibonacci 23.6% retracement at 1.0660 forms significant support. Right below that level, the 200-period SMA on the four-hour chart aligns as next support at 1.0640. With a four-hour close below the latter, EUR/USD could extend its slide toward 1.0600, where the ascending trend line meets the Fibonacci 38.2% retracement level.”

“On the upside, 1.0700 (psychological level, static level) aligns as initial resistance ahead of 1.0750 (monthly high). The pair needs to reclaim 1.0700 and stabilize above that level for bulls to retain control of the pricing action,” Eren added further.

Key Notes

 •  EUR/USD Forecast: Bulls need to defend 1.0660 to keep sellers at bay

 •  EUR/USD: Rally unlikely to extend towards the 1.08-1.09 area – ING

 •  EUR/USD: Bears regain control and visit the sub-1.0700 area

About US durable goods orders

The Durable Goods Orders, released by the US Census Bureau, measures the cost of orders received by manufacturers for durable goods, which means goods planned to last for three years or more, such as motor vehicles and appliances. As those durable products often involve large investments they are sensitive to the US economic situation. The final figure shows the state of US production activity. Generally speaking, a high reading is bullish for the USD.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content

Recommended content

Editors’ Picks

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD steadies near 1.0550, looks to post modest weekly gains

EUR/USD has lost its bullish momentum after having climbed above 1.0570 with the initial reaction to the US data in the American session and retreated toward the mid-1.0500s. On a weekly basis, the pair remains on track to close in positive territory. 


GBP/USD struggles to hold above 1.2300

GBP/USD struggles to hold above 1.2300

GBP/USD has edged lower following a jump above 1.2300 in the early American session on Friday. The market mood remains upbeat ahead of the weekend with Wall Street's main indexes posting strong daily gains on upbeat US data. 


Gold stays below $1,830 as US yields edge higher

Gold stays below $1,830 as US yields edge higher

Gold continues to fluctuate below $1,830 on Friday and looks to close the second straight week in negative territory. Fueled by the risk-positive market environment, the benchmark 10-year US Treasury bond yield is up more than 1% on the day, limiting XAU/USD's upside.

Gold News

Why Cardano could surprise over the weekend

Why Cardano could surprise over the weekend

ADA  set to close out the week with a gain on the workday trading week and over the weekend? Central banks signaled that the rate hike cycle is ending, meaning less stress and tight conditions for trading, opening up room for some upside potential with Cardano set to pop above $0.55 and test a significant cap.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!