US durable goods orders preview: What to expect of EUR/USD

By FXStreet FXStreet (Mumbai) – The USD is trading mixed against the majors after the dovish ECB and a rate cut in China brought back fears of an all out currency war. The immediate focus now is on the US durable goods report for September.

Durable goods orders expected to drop

Corporate spending as represented by the durable goods orders is seen falling 1.3% in September, following a 2.3% drop in August. Durable goods ex-transportations is seen stalling. The number comes a day before the FOMC rate decision, which could very well turn out as a non-event for the markets.

Corporate spending, along with the household spending has remained anaemic despite the record stock market rally, low rates. Both have failed to tick higher in anticipation of a rate hike. At the moment, the markets see a rate hike happening in March 2016. In case the durable goods orders contract, the Fed rate hike bets could take a further hit.

EUR/USD Technical Levels

At 1.1060, the immediate resistance is located at 1.1116 (200-DMA), while support is seen at 1.1016 (76.4% exp of Aug high-Sep low-Oct high). A positive surprise from the durable goods figure could trigger a break below 1.1016 and lead to a …read more

Source:: FX Street