IMPACT ON THE EURO-
The second allotment of the TLRO came in at 129.84 billion Euros, but it was expected at 148 84 billion Euros. Today, the focus has shifted to the industrial production report, employment change data, and German wholesale price index. We are expecting industrial production to rise by 0.2% or 0.3% after a progress in October. As for the employment data, we are expecting the same. Speaking about Germany's WPI, we are expecting 0.3% growth after a 0.6% fall.
IMPACT ON THE USD-
Today, traders are focused on PPI, core PP,I and prelim University of Michigan consumer sentiment.
TECHNICAL VIEW
The pair made a triple top at 1.2448 (rounded to 1.2450) and closed below 20Dsma. At the session on Wednesday, we recommended buying at 1.2400 with the targets at 1.2460, 1.2500, and 1.2560. At yesterday's session, the pair made a high at 1.2497 and turned back to the lows again. The pair has parallel support at 1.2387 and 1.2360. Today, the pair opened below the previous close and is trading below that. We recommend Intraday fresh selling below 1.2360 with the targets at 1.2340 and 1.2300. Bears hold the grip, until the prices close below 1.2450 on a daily closing basis. On the higher side, it has resistance at 1.2420 and 1.2430.
Trade: sell below 1.2360.
