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The US dollar has been in stagnation for two consecutive days. Based on the dollar index (DXY) chart, it has a variable amplitude of 91.75/91.95.
It can be recalled that the Dollar Index (DXY) is the ratio of the US dollar (USD) to a basket of six currencies and is a weighted average of the dollar against the Euro (EUR), Japanese yen (JPY), British pound (GBP), Canadian dollar (CAD) , Swedish krona (SEK) and Swiss franc (CHF).
This serves as an indicator of market sentiment against the US dollar.
In terms of the economic calendar, Italy and France published its inflation data, which turned out to be better than expected. However, the market ignored it, since traders estimate this indicator only within Europe.
This was followed by the publication of the US retail sales data in the afternoon. The previous figure was revised upwards from 7.4% to 9.51%, and the current data was better than expected from 5.5% to 6.27%.
The US dollar received significant support considering the EUR/USD pair, where the quote's movement in the market coincided with the time the US data was published.
What happened on the trading chart?
The EUR/USD pair moved into a stagnation stage after a sharp decline, concentrating within the borders of 1.1882/1.1910. It is possible that we are dealing with a temporary levels that will focus the trading forces on itself, giving acceleration.
The GBP/USD pair implemented a V-shaped fluctuation pattern, which resulted in a price slowdown at the high of the area of 1.3877/1.3905. This caused a new speculation in the market.
Such price fluctuations lies in the information flow relative to the popular topic of the AstraZeneca vaccine.
Trading recommendations for EUR/USD and GBP/USD on March 17
Today, the European Union will release its final inflation data, which is forecasted to remain at 0.9%.
The market is not expected to react to this.
Today's key event is the Fed's scheduled meeting, from which the regulator will announce its plans based on the results. According to experts, the Fed will follow the path of the ECB. This means that it will not do anything drastic, and its actions will be exclusively observational.
Looking at the EUR/USD pair trading chart, it can be seen that the quote continues to follow the borders of 1.1882/1.1910. In this case, we should apply the trading method of breaking through a particular border, working on the impulse.
Buy positions on a pair will be considered if the price holds above the level of 1.1910, with the prospect of moving to 1.1960.
Sell positions on a pair will be considered if the price holds below the level of 1.1880, with the prospect of moving 1.1865-1.1850.
As for the trading chart of GBP/USD pair, it shows that the market is still dominated by speculative hype. As a result, the current accumulation was broken in an upward direction, reaching the coordinates of 1.3928.
It is worth considering that the area of the psychological level (1.3950/1.4000/1.4050) is located above the quote. Here, we should not rule out a change in the impulse movement due to the instability of the trading interest.
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