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EUR/USD: watch dowside below 1.0580

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 25, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Guatemala) - EUR/USD is consolidated on the hourly chart and capped by the 100 SMA while recovery attempts are shallow and lack conviction. There were however a number of data releases that may have an impact further down the line when it comes to decision making.

    In Germany, the final Q3 GDP reading came in line with expectations, as the economy grew 0.3. The IFO survey showed that local business confidence increased to 109.0 in November, from 108.2 in October vs last month's drop.

    For the US, the trade deficit in October was an improvement and there was also an upward revision of the Q3 GDP at 2.1% vs the first estimate of 1.5%. However, worse-than-expected November consumer confidence that down to 90.4 from a previous 99.1 wasn't supportive and left markets awaiting the Durable Goods orders tomorrow instead ahead of the Thanksgiving holidays and thin markets.

    EUR/USD levels

    Technically, analysts at UOB Group explained, that the sudden reversal last Friday clearly indicates that the recent short-term upward momentum has fizzled out. "While the current weakness could extend lower, we prefer to see a daily closing below 1.0580 before adopting a bearish stance. That said, only a move back above 1.0660 would indicate that the immediate downward pressure has eased."
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