Consolidation continues while the pair remain capped by the 1.0700 on the downside and 1.0780 on the upside, with confirmation below 1.0700 could open the door to further downside.
The single currency recorded a moderate growth against the dollar on Wednesday and was trading at a price of 1.0740 at the end of the session. The daily extremes were reached respectively at 1.0773 and 1.0705. Attitudes remain negative, but a break of levels at 1.0655 will confirm the dominance of the bears.
Yesterday the EURUSD rose with a narrow range and closed in the red in the green near the high of the day.
Yesterday the pair touched the Fibonacci extension at 1.0703 but without any follow thru suggesting a continuation of the consolidation mode.
The key levels to watch are the 1.0900 (Resistance), the 10-day moving average at 1.0813 (resistance) 1.0819 (support), a Fibonacci extension at 1.0703 (Support) and 1.0622 (Support).
Despite Draghi hinted that the ECB could take further easing measures in December has put downward pressure on the currency, Eur/Usd once again failed attempt to break below 1.0700 level.
Not only did the pair fail to break below 1.0700 but it bounced off the support and reached 1.0807 breaking above the resistance at 1.0780. It's possible it will continue climbing until it reaches the next resistance at 1.0910.
The EUR/USD moving on a daily basis between 1.0800 and 1.0700, but i see that the U.S. Retail Sales will pull the pair again to test the 1.0730 support level.
The EURUSD drops to the 1.0700, but then it changes direction real fast to the 1.0800 level. At the moment, the pair has made a triple top at the 1.0800, 15 min chart, and it could be an indication of a possible breakout.
The pair will most likely reach 1.0900 and perhaps even break below that level, but the end of the correction and the continuation of the bearish trend will be confirmed after it breaks below 1.0460.
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