EURUSD, Daily
This week offers limited data for the Eurozone area, but highlights include changes in employment, inflation (CPI) and GDP figures. Vaccine rollout developments have boosted confidence in the region, but ZEW data shows that businesses are still very cautious in the recovery. Expectations that there will be another spike in Covid-19 cases and confidence that growth will weaken are behind the dismal outlook.
EURUSD, D1 – Last week’s rebound shows a near-term low of 1.1705, on the condition of a bullish RSI convergence ahead of the key 1.1602 / 1.1703 support zone. The initial bias is now on the upside for the 1.1908 /38.2%FR/EMA200 resistance. A decisive break there will have implications for a forward direction for 1.1974 /50.0%FR and round number 1.2000. A break of the 1.2000 level will turn the short term outlook to bullish to test 1.2050 and 1.2135. However, a move below 1.1705 will turn the focus back to 1.1602 as a key support zone again. Technically the price is still below the 200-day EMA and below the Kumo, the RSI is above the 50 level.
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Ady Phangestu
Market Analyst
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