Euro/dollar made a first attempt to break out of the triangle on Friday after the terrible NFP. A failure to move higher sent the pair back down to the middle of the range, around 1.12. A second attempt is already in the works and the bar is lower this time, at 1.13. Will we see a breakout this time?
Downtrend resistance was formed in August, when the common currency enjoyed the crash in Chinese stock markets. It was then tested in September after the Fed and then after the NFP.
Uptrend support awaits is more moderate and awaits only at 1.1125.
The round level of 1.13 is also a convergence line with resistance: the pair got stuck there after the Fed.
Data from the old continent hasn’t been that encouraging, with misses on services PMIs from both Spain and Germany. However, it is the dollar sell off that pushes the pair higher. However, Euro-zone retail sales beat expectations by remaining unchanged instead of falling. The Sentix Investor Confidence scored 11.7 points, within expectations.
Later this week we’ll hear from central banks on both sides of the Atlantic: the Fed’s meeting minutes are released on Thursday and ECB President Mario Draghi speaks already tomorrow.
In our latest podcast we discuss the Nightmare NFP, Judge Japan and Natural Gas:
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