Yesterday EUR/USD is moving in a tight range, this is happening because of the issue of tapering QE at the nearest December meeting. 29 from 63 economists believe the tapering will start this month and the rest believe in March 2014. If the tapering starts now in December 2013, it will change the investment direction of all market participants. That is why, many market participants are away from the market and waiting for the FOMC decision. This action makes EUR/USD move in a tight range. However, today we predict this pair will move with low to medium volatility during the European session because the Eurozone will release some data like German ZEW Economic Sentiment; CPI y/y; Core CPI y/y; ZEW Economic Sentiment. The US data such as CPI m/m; Current Account; NAHB Housing Market Index is on tap.
TODAY's TECHNICAL LEVELS:
Breakout BUY level: 1.3823.
Strong Resistance:1.3814.
Original Resistance: 1.3801.
Inner Sell Area: 1.3788.
Target Inner Area: 1.3755.
Inner Buy Area: 1.3722.
Original Support: 1.3709.
Strong Support: 1.3696.
Breakout SELL level: 1.3687.
DESCRIPTION:
Today EUR/USD has support and resistance at 1.3709 and 1.3801. The rate is accompanied by strong support at 1.3696 and by 1.3814 as strong resistance.
If EUR/USD breaks out and closes below 1.3687 level today, then it will indicate considerable bearish strength. Meanwhile, if EUR/USD manages to break out and closes above 1.3823 level, then it will denote high bullish strength. Alternatively, for advance traders, you can trade in a way to open a BUY position at the level of 1.3722 and at 1.3788, a SELL position. In this case both targets should be located at the level of 1.3755.
Best regards,
Arief Makmur
Official Analyst of InstaForex Group
InstaForex Group
https://instaforex.com
blog.mt5.com/arief
https://www.mt5.com/forex_analysis_award/profile/index/arief
Disclaimer:
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