EUR/USD starts trading near weekly PP at 1.1810
Morning outlook - EUR/USD starts trading near weekly PP at 1.1810
In line with expectations, the currency pair continued to move horizontally in anticipation of release of information about the US CPI. Although the data appeared to be worse than expected, the rate failed to surge above the monthly PP at 1.1875. As a result, new trading week it started at the updated weekly PP at 1.1810, being squeezed between the 55- and 100-hour SMAs from the top and the 200-hour SMA from the bottom.
This fact suggests that despite that the average market sentiment is predominantly bearish, the pair is likely to fail to pass through the 1.1783 mark in one go. However, since the pair has recently made a breakout from the rising wedge, in general, it is expected to stick with the southern direction.
In line with expectations, the currency pair continued to move horizontally in anticipation of release of information about the US CPI. Although the data appeared to be worse than expected, the rate failed to surge above the monthly PP at 1.1875. As a result, new trading week it started at the updated weekly PP at 1.1810, being squeezed between the 55- and 100-hour SMAs from the top and the 200-hour SMA from the bottom.
This fact suggests that despite that the average market sentiment is predominantly bearish, the pair is likely to fail to pass through the 1.1783 mark in one go. However, since the pair has recently made a breakout from the rising wedge, in general, it is expected to stick with the southern direction.
As it was expected, the currency pair failed to pass through the 200-hour SMA from the first attempt. However, a combined pressure of the 55- and 100-hour SMAs in conjunction with the weekly PP was too strong to allow the Euro to make any advances against the Dollar.
As a result, the new trading session the rate started near the 1780 mark, facing no support barriers on its way up until the weekly S1 at 1.1735. This fact plus the 57% bearish market sentiment and an aggregate of technical indicators, which sends a clear sell signal, suggest that the currency pair is going to continue to move to the bottom, trying to reach the 100% Fibonacci retracement level at 1.1715. But there is a need to take into account an effect from release of the Euro Zone’s inflation data and German business sentiment.