EUR/USD under pressure
EUR/USD remains under pressure, but continues a sideways trade. The pair tried to rebound after the morning dip to $1.2885, but was capped at $1.2930. As of writing, bears pulled the pair back to $1.2900.
German import prices dropped more than expected; French consumer confidence has also disappointed the markets to the downside. There are no more data releases on the EU agenda, so investor’s attention will now switch to the US statistics. Pay attention to the CB consumer confidence at 14:00 GMT (forecast – positive, good for USD).
Our sentiment remains bearish, but we would expect a stronger confirmation for sales and sell on a clear break of the $1.2900/$1.2880 support area. Note that sell stops lie in the $1.2820/00 area, so a break below this level would catalyze the downside. Resistance for the bulls is seen at $1.2930, $1.2950 (38.2% Fibo) and at $1.2980/1.3000 (50% Fibo, top of the daily Ichimoku).
Chart. H4 EUR/USD