Daily Insight: EUR/USD Overall Bearish But Upside Potential Remains
Matt Simpson | Nov 25, 2014 01:58AM ET
UP NEXT:
You may have noticed how well EUR crosses performed last night on the Business Confidence alone. This would have been triggered by nervous bears but also acts as a warning of what to expect if we see any strength in European data (more short covering to support EUR crosses).
It will then be over to the US where we have Core PCE (the Fed's preferred inflation indicator) along with GDP. When you consider the FED have been warning of softer inflation, then even coming in on or just below target would probably be a USD bullish signal to the markets and bring further pressure on EURUSD.
TECHNICAL ANALYSIS:
EURCAD: Testing neckline
This pair has been well documented recently so this is an alert to notify you we have now retraced towards the neckline.
This could suit a quick and dirty entry with a stop above the neckline and to walk away to let the market do it's thing. There is plenty of data form Europe and Canada to get some movement here and only time will tell how directional that move may be.
EUR/USD: Overall bearish but with upside potential
Nice and easy today as not a single level needs adjusting from yesterday. The only thing I will add is that the 1.24428 resistance zone is now the level to choose between bullish or bearish setups.
Get The News You Want
With data from Europe and US tonight we can expect positions to be taken before the event, with any softness in numbers creating even bigger moves.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.