Ahead of us the last session of the week, which may give an answer as to the further direction of EURUSD in the medium term. The economic calendar is full of many interesting reading but the most important of which will flow from the US. The market will be live data on retail sales and core retail sales. Especially important for investors will read the producer price index (PPI), which acts as prognostic and may signal subsequent changes in readings of consumer ( CPI ).
The outlook for EUR / USD:
The situation on the currency pair once again has not changed, despite the defense support of 1.08 and another unsuccessful attempt to break the 1.0945 level. The market certainly waits for a pulse and for me the signal may be afternoon data from the US. Therefore, I do not think there may be a decision before 14:30. At the moment we are in sideways, limited support for 1,08-1,0810 and resistance at 1.0945.
If my assumptions are correct, we should be prepared for stronger moves after data from the US. As discussed in previous reports, breaking the 1.0945 level (peaks 7 and 11 January), will open the way toward 1.0971 and 1,0980-90. In turn, defeat-level support 1,08-1,0810, will direct toward lower price levels. The aim in this case, be a zone aids at levels 1,0680-1,0715.