EUR/USD plunged yesterday to 1.1109 at which, the pair alerted for trend reversal as the downside prevailed, but as rumors were leaked that the ECB could bring some new measures regarding Quantitative Easing Program being removed as a headline (Reuters), the pair reversed its destination and rallied with +96-pips daily price action, landing in 1.1205 high. Negative U.S Consumer Confidence yesterday contributed to cable rallies.
Technically EUR/USD closed at 1.1185, above its daily 10-EMA at 1.1155 which promises of further attacks upward seeing last week's highs. Currently the pair is trading 1.1172 at 7-EMA (D1), and in case the pair closed above 1.1185 again, the pair will sustain the bullish trend.
Fundamentally, Euro awaits a variety of local data a hefty local data which will be released on several time-stages shortly which could impact the pair levels depending on the quality of the data.
Fundamentals:
1- EUR- German Retails Sales m/m today at 6:00 AM GMT.
2- EUR - French Prelim CPI m/m today at 6:45 AM GMT.
3- EUR- German Unemployment Change today at 7:55 AM GMT.
4- EUR - Italian Monthly Unemployment Rate today at 8:00 AM GMT.
5- EUR - EU CPI Flash Estimate y/y + EU Core CPI Flash Estimate y/y + Italian Prelim CPI m/m + EU Unemployment Rate today at 9:00 AM GMT.
Note: Today's data along with last week EU data will give a hint about ECB meeting minutes and the conference tone.
Technical Overview:
Trend: Bullish Sideways
Resistance levels: R1 1.1190, R2 1.1206, R3 1.1234
Support levels: S1 1.1160, S2 1.1138, S3 1.1109
Comment: Yesterday strong re-bounce off S3 level and closing above 1.1155 keeps the cable bullish forces intact with expectation for further attacks at yesterday's highs 1.1205+. Closing above R2 prompts further rallies seeing 1.1300+/- destination. Closing below 1.1155 hold selloffs congestion testing 1.1109 level with expectations for dips fighting 1.1160 & 1.1109, in case 1.1109 failed to hold, alerts for trend reversal but only a close below 1.1080 is a confirmation for bearish trend.
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