Despite better than expected data in Europe, showing an improve in Trade Balance and overall sentiment according to the ZEW survey the EUR/USD is unable to establish itself above the 1.3000 level: a higher high for the week has been reached as the pair traded as high as 1.3014 already today, although price quickly retraced back below 1.2990, past Friday high. Technical readings in the 4 hours chart hold a bullish tone as indicators head higher above their midlines, yet only a break above the daily descendant trend line, today around 1.3025, will confirm more gains ahead for the EUR/USD, with scope then to test 1.3070, October 10th daily high and next resistance. Once above, 1.3110 is next bullish target.
To the downside, immediate support comes around 1.2950, yet only below 1.2920 the bearish momentum may pick up, targeting then the 1.2870 strong support zone. View Live Chart for EUR/USD