Trading plan for 26/11/2018

On Monday, the 26th of November, the event calendar is light in important data releases. Germany will issue the IFO sentiment indicators early in the morning. However, there are some speeches scheduled from the member of the Executive Board of the ECB Benoit Coeure, ECB President Mario Draghi and BOE Governor Mark Carney.

EUR/USD analysis for 26/11/2018:

One of the country's key business sentiment surveys (Ifo - Information and Forschung Survey). The survey is conducted monthly, querying German firms on the current German business climate as well as their expectations for the next six months. As the largest economy in the Eurozone, Germany is responsible for approximately a quarter of the total Eurozone GDP. Consequently, the German Ifo is a significant economic health indicator for the Eurozone as a whole. Positive readings bode well for the economy, suggesting increased consumer spending and economic growth. Conversely, low Ifo readings may be indicative of economic slowdown.

The index uses 100 as a centerline between positive and negative outlooks; the further the value is from 100 the stronger the sentiment. The survey presents two equally weighted sub-indices: Current Assessment and Business Expectations.

This month the economists expect Ifo Business Climate Index to remain almost unchanged at the level of 102.3 (versus 102.2 prior), Ifo Current Assessment to decrease slightly from 105.9 to 105.6 and IFO - Expectations to decrease from 99.8 to 99.3.

Let's now take a look at the EUR/USD technical picture at the H4 time frame. The market has broken below the local trend line and made a local low at the level of 1.1325. The price is now trying to bounce towards the level of 1.1359 and if the bulls will make it, then the next target is seen at the level of 1.1424. On the other hand, the nearest technical support is seen at the level of 1.1301. The oversold market conditions might help bullish case.

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The material has been provided by InstaForex Company - www.instaforex.com