• ECB has now confirmed the downside risk in the EA, a dovish turn
• Thursday’s PMI highlights further woes
EUR crosses running to an area of support zone, break down would trigger a downgrade. The immediate support for Gold is 1276$. If this break, then there could be a 20$ fall.
After the ECB’s Draghi comments, EURUSD fell sharply but held the support zone. EURGBP was the biggest loser down over 1.50%, followed by EURUSD with 0.80% in this week, so far. The immediate crucial support zone could be found at 1.1300-1.1260, if it breaks focus shifts to November 2018 low at 1.1215.
Ahead of today’s macroeconomic data German Ifo Business Climate, we trade between 1.1260-1.1335. Overall, the price action has struck in a narrow range of 1.1400-1.1260 and requires a significant range breakout through 1.1425 for the next leg of the rally.
Today in Asia session, the price hit a session low of 1.1300. The daily RSI is parked below the 50 equilibrium but the oscillator is extremely bearish, hence setting is mixed.
• For bulls, as long as 1.1215 is supporting (Friday closing basis) look for 1.1350 and 1.1400 initially.
• For bears, close below 1.1215 means 1.1100 and 1.1000 is coming.
Here are the Key support and resistance for EUR crosses:
Turning to Gold, the immediate key support could be at 1276$; if the price breaks that level, we could expect a sharp fall in the coming days. According to the below chart, intraday pivotal finds at 1279$ followed by 1276$ triple bottom. On the upside key resistance levels are placed at 1283$ and followed by 1287$ Wednesday high.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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