EUR/USD Technical analysis 7 January 2019
2019-01-07 12:00 am | Resource: Technical Analysis | No Views : 232
The EURUSD is moving in a sideway direction in the near term.
The EURUSD is still facing resistance and selling pressure around the 1.1410 level as the EURUSD continues to suffer from selling pressure around the resistance level of 1.1410, but it is worth noting that the EURUSD is still consolidating above the main downtrend line which trades above it and above the support level of 1.1300 , On the other hand and with the analysis of the dollar index, we find that the index is still suffering from selling pressure and the bearish target is still exists.
In view of the technical indicators
Note that the EURUSD is trying to exceed moving average 20 line from the Bollinger band indicator.
Both the RSI and the Stochastic are indicating to the recovery of indicators.
Therefore, we expect that the EURUSD will break through the 1.1410 level, Which by breaking it above will target the levels of 1.1480-1.1500.
The alternative scenario is that the EURUSD broke level of 1.1300 down to retreat the EURUSD to levels of 1.1264-1.1200.
Our view is currently neutral for the EURUSD pair.
The fundamental overview
• On the economic data level, several Euro Zone reports, including German factory orders, will be released on a monthly basis at 2 am GMT, measuring the change in the total value of orders from manufacturers, which is one of the most important indicators for measuring production. Higher orders indicate improved manufacturing activity that is fully operational to meet these demands. The data is a detailed statement showing the decline of the various sectors, as well as the major sectors of the economy that have seen improvement. As is the case with PPI data and factory orders data except for the construction sector. Is a leading indicator of German economic analysis and analysis. It is also available for both domestic and foreign applications. The results are compiled on a monthly basis to measure the initial growth in orders as well as to analyze price change on the basis of price. In addition, the German retail sales report was released on a monthly basis at 2 am GMT, Retail Sales Excluding cars and fuel stations, as well as the retail sales report for the whole euro area on a monthly basis at 5 am GMT, measures the total change in value of sales - adjusted for inflation - at the retail level, which is among the most important basic accounts For consumer spending, which constitute the total economic activity.
• On the other hand, the ISM Non-Manufacturing PMI report will be released at 10 am GMT. The Institute for Non-Manufacturing Supply Management is conducting surveys of more than 375 companies in major sectors across the United States; including agriculture, mining, construction, transport , Communication, wholesale and retail. There are four components of this indicator: business (closely linked to the production index), new orders, recruitment and delivery of supplies (also known as vendor performance). The first three components are adjusted on a seasonal basis but the delivery delivery component is not seasonal . If the reading above 50% indicates a slow pace of delivery and below 50% indicates the fast pace of delivery, however, the slow pace of delivery is a positive for the economy, indicating the increasing demand rates and the inability of sellers to meet these requests on the face the speed. The reading above 50% indicates the expansion of the non-manufacturing sector in general, and below 50% indicates contraction, which is a leading indicator of the economic situation; business is rapidly affected by market conditions and procurement managers have insight into the company's outlook on the economy. Traders watch this indicator accurately; this indicator provides early data on investment performance. It may be considered a leading indicator of economic activity overall. Traders want the stock market to see a better pace of the economy as business recovery means higher corporate profits, while bond traders prefer to slow growth because their trades are heavily affected if the economy grows rapidly, which could create deflationary pressures.
Resistance: 1.1484 - 1.1500 - 1.1550
Support: 1.1350 - 1.1300 - 1.1264
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