Market Update Friday 14 May

Retail sale Decreased fears.

By: Ahura Chalki

Market analyst – IFC Markets

Inflation increased, and Retail Sales were flat in April, while March figures revised up by 10.7%. After weaker than expected NFP numbers, these data reduced the fears of the U.S. economy running hot. 

Core retail sales in April fell 0.8%, compared with 0.7%, raising expected. Core retail Sales also revised up to 0.9% from the initial expectation of 8.4%. 

Economic data show that the U.S. economy is increasing, but slowly and much more similar to reality than a sharp increase. It is helping the positive sentiment in the market, as it shows that the economy still needs the central bank’s support, and FED will not decrease its stimulus or increase the interest rate anytime soon. 

March revised numbers mostly come after stimulus checks paid by the government to households across the country. 

SP500 – Above 4,162 (R1), the index will look forward to touching the 4,230 (Third Resistance), where it started its latest downtrend. Price moves above the trend line in the chart and OBV’s trend line trend, while RSI at 67% helps the expectations move forward. 



USD Index – Heiken Ashi Candles create Descending candlesticks, one after another, with an apparent bearish pattern. 90.15 is the key level for the USD index. Any number above this level can still read as a positive signal. The downtrend for the middle and long term must be breached index this level, which is the third support. On the flip side, above 20 M.A. and S1 at 90.50, the signal to reach higher numbers will start. 



EURUSD – Moves in a clear uptrend above the first resistance at 1.2135. Pivot point at 1.2100 supports the general uptrend to chive the second resistance at 1.2150. In the alternative scenario, below 1.2100 downsides can continue towards 1.2090 and 1.2050. However, since the USD index returned to its downtrend, the pairing’s uptrend is more likely than a downtrend. 



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