EURUSD: consolidation with Bullish Bias (Dec 11, 2013)
December 11, 2013 8:45 am
Technical Outlook:
EUR/USD is consolidating after hitting a six-week high of 1.3795 Tuesday. it is supported by negative USD sentiment; reduced expectations that the European Central Bank will ease monetary policy further–ECB President Mario Draghi said Tuesday that while inflation is expected to stay well below the ECB’s target of just under 2% “for a protracted period,” stable inflation expectations signal that Europe does not face Japanese-style deflation and there is no imminent need to further ease monetary policy. But EUR/USD upside is limited by euro sales in soft EUR/JPY cross amid increased investor risk aversion.
Data focus: 0700 GMT Germany November final CPI.
Technical Comment: Daily chart is mixed as MACD is bullish, the 5- & 15-day moving averages are advancing; but stochastics turned bearish at overbought.
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 1.3795 and the second target at 1.3815. 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 1.374.
Resistance levels: 1.3795 1.3815 1.3875
Support levels: 1.369 1.365 1.35
The material has been provided by InstaForex Company – www.instaforex.com
Technical Outlook:
EUR/USD is consolidating after hitting a six-week high of 1.3795 Tuesday. it is supported by negative USD sentiment; reduced expectations that the European Central Bank will ease monetary policy further–ECB President Mario Draghi said Tuesday that while inflation is expected to stay well below the ECB’s target of just under 2% “for a protracted period,” stable inflation expectations signal that Europe does not face Japanese-style deflation and there is no imminent need to further ease monetary policy. But EUR/USD upside is limited by euro sales in soft EUR/JPY cross amid increased investor risk aversion.
Data focus:
0700 GMT Germany November final CPI.
Technical Comment:
Daily chart is mixed as MACD is bullish, the 5- & 15-day moving averages are advancing; but stochastics turned bearish at overbought.
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 1.3795 and the second target at 1.3815. 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 1.374.
Resistance levels:
1.3795
1.3815
1.3875
Support levels:
1.369
1.365
1.35
The material has been provided by InstaForex Company – www.instaforex.com
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