Euro remained its weakness on Tuesday because US dollar continue to strengthen. The US consumer confidence index, new home sales and the Richmond Fed Manufacturing Index all performed better than expected. The market expects that the European Central Bank will maintain a dovish stance and may raise its inflation forecast, but this may affect income levels during the period when commodities are rising. Data shows that bond market investors expect Euro Zone’s inflation to exceed 2.07%, reaching a 7-year new high.
From a technical perspective, Euro closed bearish. Euro’s candle fluctuates around the middle BOLL band. Indicators are neutral but relatively bearish. H4 graph shows that Euro broke through the upwards channel and is under pressure below MA60 days. MACD is under 0 axis while RSI remains neutral. Overall, prioritise Sell within the fluctuation zone. The chart below is showing the key point and the estimated trend, the deciding point whether to buy or sell is near 1.1620.
Resistance：1.1620-1.1650-1.1670
Support：1.1570-1.1550-1.1520
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