EURUSD

The single currency is set to test key support levels vs the greenback as this week is filled with major economic data releases. During the course of last week, EURUSD tumbled over 450 pips with only a few weak attempts to stop the bear run, which in fact turned into nice trend continuation patterns.

Since the beginning of this week, EURUSD failed to move above 1.0620 and the few attempts to do so have seen during rejections a significant increase in volume and thus suggesting a 1.0620 to be the intra-day resistance. The next very important support level is around the rate of 1.0460. That’s because, technically speaking, this level opens two possibilities. The first likely scenario is to obviously continue with the trend down to the parity level, providing 1.046 and 1.0340 areas are broken as easily and with same pace as previous 1.09 and 1.08. On the other hand (Chart B EURUSD Weekly). The level of 1.0460 can be seen as a double bottom formation, which if valid could see EURUSD advancing to 1.16 as a long term target with major long resistance at 1.1050. Thus, 1.0460 being a significant base for EURUSD expect large movements from there.

Bear in mind the following events scheduled for this week, which will see EURUSD moving large: (server time)

Tuesday: USD Retail Sales 14:30

Wednesday: EUR ECB Interest Rate Decision 13:45 followed by ECB Monetary Statement 14:30

Thursday: USD Initial Jobless Claims and Continuing Jobless Claim 14:30

Friday: EUR CPI reports 11:00, USD CPI reports 14:30 followed by Michigan Consumer Sentiment Index 20:00

We strongly suggest placing SL orders each time you place a trade.

This is a very good report. Pls let it continue