When are the US durable goods orders data and how could it affect EUR/USD?

Haresh Menghani FXStreet

US durable goods orders overview

Wednesday's US economic docket highlights the release of durable goods orders data for October. The US Census Bureau is scheduled to release the monthly report at 1330 GMT and consensus estimates point to m/m decline of 2.5% this time, as against 0.8% growth recorded in September.

Meanwhile, excluding transportation items, core durable goods orders, which tend to have a broader impact than the volatile headline figures, are anticipated to have risen by 0.4% during the reported month as against 0.1% previous.

Deviation impact on EUR/USD

Readers can find FX Street's proprietary deviation impact map of the event below. As observed, the reaction is likely to be confined between 15 to 25 pips during the first 15-minutes and could extend up to 65-75 pips in the following 4-hours in case of deviations from 0.6 to -1.0. In the last five releases, the pair moved, on average, 12-pips in the 15-minutes after the data release and 40-pips in the following 4-hours.

EUR/USD important levels to watch

Yohay Elam, FXStreet's own Analyst explains, "1.1420 capped EUR/USD late last week and is immediate resistance. 1.1475 was the high point earlier this week, before the downfall. 1.1500 was the high point in November. 1.1550 and 1.1620 are next up."

"1.1395 is weak support: it cushioned the pair's fall early in the week and also early in the month. 1.1355 was the low point on Tuesday and also a trough in early November. The former double-bottom of 1.1300 is next down the line," he added further.

Key Notes

• US Durable Goods Orders Preview: Business investment to resume

• EUR/USD is locked in a tight range but the upside is slightly more appealing – Confluence Detector

• EUR/USD Technical Analysis: Bearish ‘outside day’ prompts further retracement near-term

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.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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