Overview:
EUR/USD is trading in a lower range. It is undermined by bullish dollar sentiment, the euro sales in the soft EUR/GBP cross. But EUR/USD losses are tempered by positions adjustment before weekend.
Data focus:
0700 GMT Germany November PPI, 0710 GMT Germany January GfK consumer climate survey (forecast 7.4),
1500 GMT euro-zone December FCCI flash consumer confidence indicator (forecast minus 15.0).
Technical comment:
Daily chart is negative-biased as stochastics is falling from overbought zone; MACD turned bearish and crossed its exponential moving average.
Trading recommendation:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. A short position is recommended with the first target at 1.358 in mind. A breach of this target will move the pair further downwards to 1.3525. The pivot point stands at 1.372. In case the price moves in the opposite direction, bounces back from support, and moves above its pivot point, the price is most favorably expected to move further to the upside. In that scenario a long position is recommended with the first target at 1.375 and the second target at 1.378.
Support levels:
S1 – 1.358
S2 – 1.3525
S3 – 1.3485
Resistance levels:
R1 – 1.375
R2 – 1.378
R3 - 1.381
