US CB Consumer Confidence is based on a monthly survey of about 5,000 U.S. households regarding their opinion of the economy. Traders should pay close attention to its release, which always has a strong impact on market prices. A higher reading than the market forecast is bullish for the dollar.
Here are all the details, and 5 possible outcomes for EUR/USD.
Published on Tuesday at 14:00 GMT.
Indicator Background
CB Consumer Confidence is an important gauge of consumer confidence. Increased consumer confidence usually translates into an increase in consumer spending, a key engine of economic growth.
The indicator pushed above the 100-point line in August, coming in at 101.5 points. This crushed the estimate of 92.8 . The markets are expecting the upward trend to continue, with the estimate standing at 94.6 points for September.
Sentiments and levels
So, the overall sentiment is bearish on EUR/USD towards this release.
Technical levels, from top to bottom: 1.1373, 1.13, 1.1215, 1.1113, 1.1050 and 1.0950.
5 Scenarios
- Within expectations: 91.0 to 98.0: In such a case, EUR/USD is likely to remain within range, with a small chance of breaking higher.
- Above expectations: 98.1 to 102.0: An unexpected higher reading can send the pair below one support level.
- Well above expectations: Above 102.0: A sharp increase in consumer confidence could boost the dollar and send the pair below a second support level.
- Below expectations: 87.0 to 90.9: A reading lower than forecast could push EUR/USD above one resistance level.
- Well below expectations: Below 86.9: In this outcome, the pair could break above a second resistance level.
For more on EUR/USD, see the EUR/USD forecast.