EUR/USD: Important economic data on both sides of the Atlantic
In November, the EUR/USD formed its lowest level since February 2018 in the area of 1.1215. From that point, the market moved sideways in a lack of momentum.
From a technical chart perspective, the EUR/USD does not provide a beautiful picture. No clear trend. Momentum candles alternate with small candles with large upper and lower shadows. The price action is visible choppy and stagnant.
When the long breakout through the area of 1.1470 achieved on 9th January, many investors fueled the hope of further rising prices.
This expectation was shattered again when the price could not defend this level.
The current two-part bearish movement reaches up to the 61.8% Fibonacci Retracement. If this level offers support, there is a high probability that the bullish trend will be resumed.
On the other hand, if the market breaks through the downside of this Fibonacci level, the next price target is probably the 88.6 % retracement by the area of 1.130
EUR/USD daily chart. Source: ActivTrader
As the chart does not provide clear signals, we should not completely ignore the fundamentals.
At 10 a.m GMT, essential figures are coming from the Euro-Zone. The EU CPI is published. At 1:30 p.m. GMT the data for Building Permits and the Philadelphia Fed Manufacturing Index follow in the USA.
Written by Daniel Schuetz, External Analyst
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