The EUR/USD pair has been trading in a quite limited range this Monday after posting a daily low of 1.2361 at the weekly opening. Better than expected German IFO shown local business confidence rose for the first time in seven months, up to 104.7 in November from a previous 103.2, helping the pair reach a daily high a handful pips above the 1.2400 level where it stands. But today’s rally is quite insignificant compared to Friday’s decline, as the pair barely corrected a 23.6% of the post Draghi decline.
Furthermore the 4 hours chart shows that the pair has broke below a daily ascendant trend line, that today stands a few pips above the 38.2% retracement of the same decline around 1.2435, while indicators aim slightly higher from oversold levels, still deep in negative territory. Later on the day Markit Services PMI in the US can trigger a more interesting move, with a price acceleration above 1.2340 in fact required to see further intraday gains, up to 1.2480 price zone. A decline below 1.2360 on the other hand should expose the pair to a stronger decline, with 1.2320 as probable short term bearish target then.
View Live Chart for EUR/USD
Furthermore the 4 hours chart shows that the pair has broke below a daily ascendant trend line, that today stands a few pips above the 38.2% retracement of the same decline around 1.2435, while indicators aim slightly higher from oversold levels, still deep in negative territory. Later on the day Markit Services PMI in the US can trigger a more interesting move, with a price acceleration above 1.2340 in fact required to see further intraday gains, up to 1.2480 price zone. A decline below 1.2360 on the other hand should expose the pair to a stronger decline, with 1.2320 as probable short term bearish target then.
View Live Chart for EUR/USD
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