Overview: EUR/USD is trading in a range. It is undermined by positive dollar sentiment; surprise 1.1% on-month drop in euro-zone October industrial production (defying forecast for +0.2% increase); European Central Bank President Draghi saying bank holdings of government bonds will be tested among other debt categories in the ECB’s planned stress test next year; Deutsche Bank chief economist David Folkerts-Landau saying late Wednesday that at some point the ECB will likely have to revert to “genuine QE,” amid very weak inflation and stagnant economic activity. But EUR/USD losses are tempered by euro demand in buoyant EUR/JPY cross amid weak yen sentiment; positions adjustment before weekend.
Technical Comment: Daily chart is mixed as MACD is bullish, but stochastics turned bearish in the overbought area.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 1.3805 and the second target at 1.383. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 1.369. The breach of this target will move the pair further downwards and one may expect the second target at 1.365. The pivot point stands at 1.3735.
Resistance levels: 1.3805 1.383 1.3875
Support levels: 1.369 1.365 1.35
The material has been provided by InstaForex Company – www.instaforex.com
Overview:
EUR/USD is trading in a range. It is undermined by positive dollar sentiment; surprise 1.1% on-month drop in euro-zone October industrial production (defying forecast for +0.2% increase); European Central Bank President Draghi saying bank holdings of government bonds will be tested among other debt categories in the ECB’s planned stress test next year; Deutsche Bank chief economist David Folkerts-Landau saying late Wednesday that at some point the ECB will likely have to revert to “genuine QE,” amid very weak inflation and stagnant economic activity. But EUR/USD losses are tempered by euro demand in buoyant EUR/JPY cross amid weak yen sentiment; positions adjustment before weekend.
Technical Comment:
Daily chart is mixed as MACD is bullish, but stochastics turned bearish in the overbought area.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 1.3805 and the second target at 1.383. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 1.369. The breach of this target will move the pair further downwards and one may expect the second target at 1.365. The pivot point stands at 1.3735.
Resistance levels:
1.3805
1.383
1.3875
Support levels:
1.369
1.365
1.35
The material has been provided by InstaForex Company – www.instaforex.com
Related Posts: