EUR/USD: Downside Action More Likable Ahead of Draghi Speech
FxGrow | Dec 07, 2017 03:54
EUR/USD has entered the fourth consolidation session with choppy sideways trading. The pair has failed to stay above the 1.1800 (10-EMA) level since Monday and is still flirting with a 1.1780 support level.
The pair lost traction after reports indicating rough negotiations with the U.K. over the Brexit deal, weighing negatively on the euro. On the other hand, last week's upbeat U.S. data and approval for tax plan is still boosting the U.S. dollar, with expectations for more upward action as the December rates odds are on the U.S. Fed's menu.
Mario Draghi, head of European Central Bank, speaks today, but expectations are high for a neutral stance, which will not be a game changer for the euro.
EUR/USD technical overview
Closing price: 1.1797
Target price: 1.1760
Resistance levels: 1.1840+, 1.1870, 1.1900*
Support levels: 1.1760-50, 1.1700-
Trend: Sideways / Down
Trend reversal price: 1.1900
Comment: The choppy slide this week is shifting the short-term trend bias down, and warns for a larger unfolding selling wave to 1.1760-/1.1700. Trade is poised for selling pressures today. A reluctance to extend / stay under 1.1800- cautions for a bounce into congestion near 11840. However, a close over 1.19000* is needed to highlight a reversing upturn form corrections to launch a fresh bull wave near 1.2000+.
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