EUR/USD: between support and resistance
EUR/USD keeps trading below resistance in the $1.3560 area 950% Fibo of the decline from Oct. to Nov.; the horizontal Kijun-sen on the daily Ichimoku chart). Further resistance is at $1.3635/40. Support lies at $1.3500, $1.3480, $1.3420, $1.3400. It seems that the pair has settled in range.
EUR/USD has been sitting in a rather tight range in the recent days compared to such pairs as USD/JPY and AUD/USD which broke to the upside and to the downside respectively. It seems that the pair’s confused amid the mixed US data (the Fed’s tapering seems more likely in next year than in Dec.) and some better figures from Germany provoking controversy comments from the ECB officials about the possibility of negative deposit rates. Euro’s also in Demand as an alternative to USD. Still, deep down the ECB’s policy is more dovish than the Fed’s one, so despite the near-term resilience in the medium/long term euro is bound for weakening.
Today there will be another portion of US economic releases at 13:30-15:00 GMT.
Chart. H4 EUR/USD