EUR/USD: Downside Action More Likable Ahead of Draghi Speech

Thu, Dec 7 2017, 10:30 GMT

by FxGrow.com

FxGrow Daily Technical Analysis – 07th Dec, 2017
By FxGrow Research & Analysis Team

EUR/USD: Downside Action More Likable Ahead of Draghi Speech


EUR/USD has entered the fourth cosolodation session with choppy sideways trading. The pair has failed to stay above 1.1800 (10-EMA) level since Monday and still flirting with 1.1780 support level.

The pair lost traction after reports indicating rough negotiations with the UK and Brexit deal, weighing negatively on the EURO. On the other hand, last weak upbeat U.S data and approval for tax plan is still boosting the U.S dollar with expectations for more upward action as the Dec. rates odds are on the U.S Fed's menu.

Draghi, head of ECB will cross wires today but expectations are high for a neutral stance, no game changer for the EURO currency.

EUR/USD technical overview

Closing price: 1.1797

Target price: 1.1760

Resistance levels: 1.1840+, 1.1870, 1.1900*

Support levels: 1.1760-50, 1.1700-

Trend: Sideways / Down

Trend reversal price: 1.1900

Comment The choppy slide this week is shifting the short term trend bias down and warns for a larger unfolding selling wave to 1.1760-/1.1700. Trade is poised for selling pressures today. A reluctance to extend / stay under 1.1800- cautions for a bounce into congestion near 11840. However, a close over 1.19000* is needed to highlight a reversing upturn form corrections to launch a fresh bull wave near 1.2000+.

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Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.

Published on Thu, Dec 7 2017, 10:30 GMT

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