EUR/USD Technical analysis 10 December 2018
2018-12-09 08:40 pm | Resource: Technical Analysis | No Views : 211
The EURUSD is moving in a sideway direction in the near term.
The EURUSD failed to stability above the resistance levels of 1.382- 1.1400 after trying to break above it. The purchasing power pushed the EURUSD pair higher trying to breach the resistance level of 1.1382 to reach the 1.1420 level as the EURUSD faced resistance and violent selling pressure, represent the main downtrend line, which the EURUSD trades below it forming a negative candlestick pattern.
In view of the technical indicators
Both the RSI and the Stochastic are indicating to the weakness of the indicators, and the Bollinger Index has reached the upper boundary of the Bollinger Index.
Accordingly, we expect that the EURUSD will fall to levels of 1.1358-1.1300, and this scenario fails if the EURUSD stability above the level. 1.1382.
The alternative scenario is that the EURUSD break level of 1.1300 down to test the 1.1215 level.
Our view is currently neutral about EURUSD pair.
The fundamental overview
• On the economic data level, the German trade balance report will be released at 2 am GMT, which measures the change in the value of imports and exports throughout the month. Germany is known for exporting large numbers of cars and machinery, and also exports chemical products and electronics. Fuel, auto parts and metals are at the top of Germany's import list. Importance is that there is a relationship between demand for exports and demand for currency, because foreigners buy local currency to pay for exports. Exports affect the production and prices of domestic manufacturers.
• On the other hand, the jobless report and US turnover will be released at 10 am GMT, measuring the number of vacancies during the month except for the agricultural sector.
Resistance: 1.1382 - 1.1435 - 1.1464
Support: 1.1300 - 1.1269 - 1.1215
The dollar traded lower against the currencies as traders were also wary of looking for riskier assets awaiting developments on the trade front. The Fed cut its target overnight rate by a quarter percentage point on Wednesday, to a level of 1.75% to 2.0%, to offset slowing global growth and the risks partly associated with President Donald Trump's trade battles with China. This was the second Fed rate cut this…
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