Euro hit 1.1670 on Monday but failed. Cautious market sentiment and rising US Treasury yields helped the US dollar strengthen, while Euro fell under pressure. The German IFO business climate index fell to 97.7 in October, which was estimated to be 97.9. The index was revised up to 98.9 in September. The fourth month decline in the index also hit the Euro market. The inflation and economic growth data to be released this week will help determine the outlook for the European economy and may also cause the euro to weaken further.
From a technical perspective, Euro’s daily candle closed bearish with an upper and lower shadow. The market’s bearish sentiment is strong, and the indicators show signs of weakening. H4 graph shows that EURSD fell below the middle BOLL band and entered the previous fluctuation zone. The indicator also turned bearish. Overall, prioritise operation within the fluctuation zone. Consider the support zone and resistance zone, the deciding point whether to buy or sell is near, it is an opportunity to break above 1.1620.
Resistance level: 1.1620-1.1650-1.1670
Support level: 1.1570-1.1550-1.1520
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.