Current trend
The EUR/USD pair corrects, trading around the level of 1.1555.
The European currency received little support after publishing several statistical indicators from the Center for European Economic Research ZEW. Thus, the index of economic sentiment in Germany for November rose to 31.7 points from 22.3 points a month earlier, remaining too low compared to values around 80 points recorded this summer. EU index of economic sentiment amounted to 25.9 points, which exceeded the previous estimates by 21 points and is also significantly lower than 81 points at the beginning of the summer. Such a significant difference reflects the current problems in the European economy, preventing the single currency from strengthening against the US dollar.
American investors are disappointed with the October producer price index data, which amounted to 0.6%, only 0.1% higher than for September. The annual dynamics of the indicator remained unchanged at 8.6%, which was worse than the forecasted 8.7%. Key data for the dollar will be released today, and investors will be able to assess the inflation rate in the US. Analysts predict growth to 5.8% from 5.4% shown a month earlier, and such a significant gap can be perceived extremely negatively.
Support and resistance
The price moves within the global downtrend channel on the global chart, but the buy signal starts to weaken: Indicator Alligator’s EMA fluctuations range narrows, and the AO oscillator histogram approaches the transition level.
Resistance levels: 1.1652, 1.1772.
Support levels: 1.1528, 1.1400.
The EUR/USD pair corrects, trading around the level of 1.1555.
The European currency received little support after publishing several statistical indicators from the Center for European Economic Research ZEW. Thus, the index of economic sentiment in Germany for November rose to 31.7 points from 22.3 points a month earlier, remaining too low compared to values around 80 points recorded this summer. EU index of economic sentiment amounted to 25.9 points, which exceeded the previous estimates by 21 points and is also significantly lower than 81 points at the beginning of the summer. Such a significant difference reflects the current problems in the European economy, preventing the single currency from strengthening against the US dollar.
American investors are disappointed with the October producer price index data, which amounted to 0.6%, only 0.1% higher than for September. The annual dynamics of the indicator remained unchanged at 8.6%, which was worse than the forecasted 8.7%. Key data for the dollar will be released today, and investors will be able to assess the inflation rate in the US. Analysts predict growth to 5.8% from 5.4% shown a month earlier, and such a significant gap can be perceived extremely negatively.
Support and resistance
The price moves within the global downtrend channel on the global chart, but the buy signal starts to weaken: Indicator Alligator’s EMA fluctuations range narrows, and the AO oscillator histogram approaches the transition level.
Resistance levels: 1.1652, 1.1772.
Support levels: 1.1528, 1.1400.