On Monday EUR/USD traded within 70 pip range. The European currency depreciated from 1.3404 to 1.3330 yesterday, not matching the positive money flow sentiment at around +19%, closing the day at 1.3376. This morning the euro is trading quietly, with movements at the lower end of yesterday's range for now.
On the 1-hour chart quotes broke up the trading range, while on the 3-hour chart a wide upward channel has formed. A break above the nearest resistance and yesterday's top at 1.3404 may trigger further strengthening of the euro. Going below yesterday's bottom and first support at 1.3330, however, would confirm continuation of the bearish trend, towards next objective downwards 1.3216.
Today's focus is on Germany and Italy CPI and HICP, EU17 Trade balance, US NY Fed Empire State manufacturing index, Retail sales, PPI, Redbook, and Business inventories, at 7, 10, 13:30, 13:55 and 15 GMT respectively.
Quotes are moving above the crossing 20 and 50 EMA on the 1-hour chart, indicating bullish pressure. The value of the RSI indicator is positive and calm, MACD is positive and inclining upwards, while CCI has thinly crossed up the 100 line on the 1-hour chart, giving over all light long signals.
Technical resistance levels: 1.3404 1.3520 1.3644
Technical support levels: 1.3330 1.3216 1.3090
EUR/USD Chart" title="EUR/USD Chart">