Today, on October 17th, during the European trading session, the common currency managed to regain some of its value against the world’s most popular currency, which is the American Dollar. Still, the recovery was rather weak. EURUSD rallied from 1.2780 up to 1.2839, thereby making a narrow trading range between the levels. With that said, the currency pair has been trading within the range since the beginning of the American trading session.
The short-term recovery initiated by EUR yesterday was suspended by strong stats that came from the US labor market. In particular, the amount of jobless claims shrank down to the 14-year low t 264 00 units. At the same time, the US industrial production boosted from -0,2% up to 1,0%.
A couple of hours later, Janet Yellen, Chairman of the Federal Reserve, made a speech. She concerned several topics, thereby saying that the distribution of income and wealth in the USA has been relatively stable over the last few decades unlike other mature economies. The stock market fully recovered but the housing market yet has to recover to the pre-crisis levels. The housing wealth (which is a crucial asset to almost any household in the USA) has been lost by most American households.
Within the framework of this speech, Janet Yellen analyzed the tendencies in income distribution and inequality, simultaneously outlining 4 sources of economic opportunities for the USA in the near future.
The first 2 sources are the resources available to the next generation and the availability of the higher education. The remaining 2 ones are business (property) and inheritance.
EURUSD Technicals
As you can see on the graph below, courtesy of Masterforex-V Academy, EURUSD has been developing a short-term uptrend from 1.2500, the experts report. Inside the rally, there are 2 completed waves - 1.2500-1.2790 (wave 1) and 1.2790-1.2605 (wave 2, retracement). The currency pair has been unfolding the 3rd wave from 1.2605. At this point, there are no signs indicating the end of the short-term rally of EURSD. If the price breaks below 1.2640, this will mean the end of the rally.
