Yesterday, the EUR/USD pair broke below 1.2100 making a low of 1.2057, touching the 4-hour uptrend channel, then bouncing slightly exhausted. Market participants are waiting for the data to be published by the ECB in a few hours.
The downward pressure of the euro-dollar is also due to the recovery of the US dollar, which weakened EUR/USD. The USDX dollar index rose above 91.17, above the 21-day EMA pointing to a bullish bias, the highest in two days. If the USDX remains above the key level of 91.00 we would expect a stronger decline of the euro-dollar for the next few days.
Today Thursday, the event expected by traders is the policy meeting of the European Central Bank. The announcement and the words of Christine Lagarde, probably trigger market volatility. In the United States, the economic data to be released includes weekly jobless claims and inflation.
The EUR/USD pair could continue to bounce to the top of the bearish channel at 1.2143, if it fails to break this level, we could expect a retracement to the support of 6/8 of 1.2085, this is the immediate support, a break of the channel trend and a pullback below this level, would trigger a fall of the pair to the zone of 1.1960 and 1.19001.
Contrary to our perspective, we should expect a break again above 1.2143, (7/8 murray zone) and a consolidation above this zone, we could buy with targets up to 8/8 murray at 1.2207. The eagle indicator is under a bearish channel, which we should expect to continue the downward pressure of the euro-dollar for the next few hours.
Market sentiment for today December 10 shows that there are 65% of investors who are selling this pair, we have noticed a decrease in this percentage, which supports our technical perspective that the Euro could fall to the 1.19 zone in the medium term.
Trading tip for EUR/USD for December 10 – 11
Sell if the pair breaks below 1.2070, with take profit at 1.1962 (4/8 murray) and 1.1901 (EMA 200), and stop loss above 1.2110.
Sell if the pair breaks above 1.2143, with take profit at 1.2207 (8/8 murray), stop loss below 1.2110.
Buy if the pair rebounds within the uptrend channel above 1.2080 with take profit at 1.2143 (7/8 murray), stop loss below 1.2057.
The material has been provided by InstaForex Company - www.instaforex.com