Forex News: Euro Pushes above Resistance, Overall Price Action Still Choppy
Forex News: The EU Economic Forecasts showed that growth is on the right track and this boosted the Euro during yesterday’s trading session, taking the pair above immediate resistance and above the 50 period Exponential Moving Average.
The pair continued its raging behaviour but broke above 1.1610 and above the 50 EMA, making the short term outlook bullish. If this bias continues, the pair will probably reach the top of the range, located at 1.1670 but it must be noted that although the last impulse is bullish, price is still not trending, in other words the next move is uncertain. A quick move below 1.1610 will bring the pair into the previous support at 1.1575.
Today U.S. banks will be closed in observance of Veterans Day and we expect this to affect volatility, especially in the NY session. The only notable release is scheduled at 3:00 pm GMT in the form of the University of Michigan Consumer Sentiment survey, which gauges the opinions of consumers regarding current and future economic conditions. Higher numbers than the anticipated 100.8 suggest that consumer spending is likely to pick up in the near future and this usually strengthens the US Dollar.
The pair remained incredibly choppy during yesterday’s trading session and moved in a tight range, without a clear bias. The NIESR GDP Estimate was rescheduled for today so the pair wasn’t affected by economic data.
The type of price action seen lately doesn’t offer any hints for future direction but usually this type of tight and choppy movement is followed by a strong breakout. The direction of said breakout cannot be determined and will probably be influenced by the British economic data released today. The levels to watch remain 1.3100 as support and 1.3160 as resistance.
At 9:30 am GMT the British Manufacturing Production numbers come out, showing changes in the total value of goods generated by the Manufacturing sector. The anticipated change is 0.3% (previous 0.4%) and usually a higher number strengthens the Pound but the impact is limited if the actual reading matches the forecast.
As mentioned before, NIESR rescheduled for today the release of their GDP Estimate. The time is 1:00 pm GMT and the previous value is of course, unchanged at 0.4%.
Written by: Bogdan Giulvezan
The article above is based on the writer’s 7-year experience and it does not constitute trading advice or investment recommendations, just a personal opinion and view of the market.