When is the US Durable Goods Orders data and how it could affect EUR/USD?

US Durable Goods Orders data Overview

The Durable Goods Orders for July is due for release today at 12:30 GMT. Economists expect fresh orders for durable goods have declined again, but at a moderate pace of 4%, compared to a 9.3% contraction seen in June. The Durable Goods Orders data measures the cost of orders received by manufacturers for durable goods.

Costs for durable goods are influenced by change in labor or raw material costs or both. Generally, an increase in cost of discretionary goods prompts inflation and forces the Federal Reserve (Fed) to turn hawkish on the interest rate outlook. Alternately, declining durable goods cost reflects cooling price pressures, which allow the Fed to turn dovish on policy rates.

How could the US Durable Goods Orders data affect EUR/USD?

EUR/USD ticks up to near 1.1650 during the European trading session on Tuesday as the US Dollar (USD) faces selling pressure. The US Dollar ticks down after the announcement of Fed Governor Lisa Cook’s termination by US President Donald Trump in a letter posted on Truth.Social.

On the daily timeframe, EUR/USD trades close to the downward-sloping trendline plotted around 1.1740 from the July’s high at 1.1830. The major currency pair trades close to the 20-day Exponential Moving Average (EMA) around 1.1644, indicating a sideways trend.

The 14-day Relative Strength Index (RSI) oscillates inside the 40.00-60.00 range, suggesting indecisiveness among investors.

A fresh upside move in the pair would be seen to near July’s high at 1.1830 and the round-level resistance of 1.1900 if it breaks above Friday’s high of 1.1740.

On the flip side, a downside move by the pair below Friday’s low of 1.1583 will expose it to the August 5 low of 1.1528, followed by the August 1 low of 1.1392.