The USD weakened against major currencies on Wednesday. The previously announced U.S. inflation data was worse than expected, which eased short-term expectations about the Fed's reduction of asset purchases, and Euro rose slightly. The previous value of the monthly rate of industrial output in the Eurozone in July was -0.30%, the expected value is 0.60%, revised by -0.1%, and the data announced is 1,5%, which is also bullish for the Euro. Schnabel, Executive Committee Member of the European Central Bank: The market may have overestimated the risk of the spread of the more contagious delta virus to the prospects of global economic growth.
From a technical point of view, Euro’s daily candle closed bullish, and the resistance is obvious. In the short term, EURUSD will keep fluctuating and choose the direction of the market. H4 graph shows that there is a probability of the formation of head and shoulders pattern. BOLL moved downwards and narrowed, and the moving averages converges. Overall prioritize Sell within the fluctuation zone. Consider the support zone and resistance zone, the deciding point whether to buy or sell is near 1.1800.
Resistance：1.1830-1.1850-1.1880
Support：1.1800-1.1770-1.1750
This material is from Quant Tech Limited and is being posted with permission from Quant Tech Limited. The views expressed in this material are solely those of the author and/or Quant Tech Limited and BTCDana is not endorsing or recommending any investment or trading discussed in the material. Before acting on this material, you should consider whether it is suitable for your circumstances and as necessary, seek professional advice