EUR/USD: news from the battlefield
EUR/USD keeps trading between the uptrend line on the upside and the daily Ichimoku Cloud and 38.2% Fibo on the downside.
We are expecting data release (German ZEW economic sentiment index at 10:00 GMT – the forecast is rather nice, an increase’s expected).
The bulls need to push euro above $1.3550 to extend correction up. There will be still more resistance at $1.3560 (50% Fibo of the decline from October), $1.3580 and $1.3630. We’ll get the first indication of a top being formed if EUR/USD slides below $1.3494 (yesterday’s low) and $1.3475 (short-term trend line). Further support is at $1.3415 and $1.3375.
Westpac will be looking to sell EUR/USD in the $1.3550 area. Credit Suisse also expects failure at $1.3548/68 and turn down to $1.3435/32, $1.3390 and $1.3359.
Chart. H4 EUR/USD