EUR/USD: Red candles in the last few days, while the MACD is in minus. Can today’s economic data turn the tide?
The EURUSD is moving sideways. The attempt to break out above the range of 1.145 ran into the sand. The market could not overcome resistance at 1.150 and is now testing its old lows at 1.127.
For further upward movement, the market would first have to break through the 1.135 to 1.140 range. This will be the most critical zone for the next few days if the bulls want to make the running. If the market manages to overcome this area, then the first short-term resistance band will be in the range of 1.150 to 1.156.
Otherwise, the upward trend is limited for the time being. If the market does not find support at 1.127 and the correction continues, a test of the 1.122 level and then the previous lows at 1.114 could be waiting in the short term.
In the medium term, a rally through the 1.150 to 1.160 range is needed to give the bulls a signal. This could then provide a positive sign of recovery to the highs of the previous range of 1.175 to 1.1850. But on the way there, it must still overcome resistance in the area from 1.167 to 1.169.
Support could come from two announcements on the economic calendar during today’s trading session. At 10:00 a.m. GMT the GDP for the Eurozone will be published, and at 1:30 p.m. GMT the US figures for retail sales are released.
EUR/USD Daily Chart | Source: ActivTrader
Written by Daniel Schuetz, External Analyst
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