The euro manages to remain higher in a quiet session but facing resistance at 100dema fails twice to handle 1.1000 levels.
ECB executive committee Mersch: ECB did not run out of ammunition. QE will depend on long-term, until a sustainable manner to achieve the goals. Currently 0.3% of the deposit interest rate is not necessarily theoretically limit.
Given the lack of macroeconomic data it is understandably a quiet days in the markets. Spanish flash CPI year on year basis due on Wednesday. Besides, US pending home sales on Wednesday and unemployment claims due on Thursday. Today, the Census Bureau will report the latest data on the trade balance in November and CB consumer confidence due.
The Standard & Poor’s/Case-Shiller survey of home prices will most likely show that average prices in October were up 5.5 percent from a year ago, in line with the overall trend for 2015. Although existing-home sales unexpectedly dropped in November, according to another report released last week, most economists think that was a temporary dip that was related to new government regulations, according
Technical view: The pair failed to handle 1.1000 levels and 100dsma acting as major resistance level to breach.
We have been recommending buying until the price holds the 1.0770. We remain to the same strategy aiming at 1.1040 initially later 1.1140 and 1.1180 levels. The pair gave a symmetric triangle breakkout in the four hour chart.
Trading support finds at 1.0950, 1.0910 and 1.0870 levels.
Resistance seems at 1.1005, 1.1040 and 1.1060
The weekly resistance seems between 1.1045 and 1.1060 levels. A weekly close above these extends the bull path towards 1.1100 and 1.1180 levels.
Flip side, selling opens below 1.0900 few pips lower targets at 1.0870 and 1.0850 levels. The selling strengthens below 1.0850 targets at 1.0810, 1.0800. The panic likely to be triggered below 1.0770.