The EURUSD sell-off gained some momentum on Friday when much of the August Eurozone data was disappointing. We will see further developments in the German August Ifo data on Tuesday. What is of little relief is that manufacturing is offsetting the decline in services in such a way that the overall numbers don’t disappoint.
EURUSD still looks to be consolidating and intraday bias remains neutral, flattening out with Support 1.1695 and Resistance 1.1915. Meanwhile, the price is stuck at EMA 120, with a downside bias which is formed by 2 minor waves. On the downside, a break of 1.1695 would confirm a near term decline and return the intraday bias towards 1.1500. The technical indication shows negative sentiment which depicts the MACD histogram as below neutral on the sell zone.
In the bigger picture, the downtrend from 1.2555 (2018 high) has finished at 1.0635. The ascending trendline 1.0635 has formed a strong trend after breaking the descending line and Resistance level at 1.1496. Further rally is likely to test 1.2000 and peak price resistance 1.2555, as long as the 1.1490 Support is strong.
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Ady Phangestu
Market Analyst – HF Educational Office – Indonesia
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