The pair gained 40 pips in yesterday’s session, after the soft US jobs data. The pair has been consolidating in a tight range between the 1.2509 and 1.2395 levels. The prices are well managed to trade above 1.2400 levels. The weekly resistance exists at 1.2510, above this at 1.2565 and 1.2577. A daily close below 1.2375 leads to another steep fall towards 1.2310, 1.2250, and 1.2226. As of now this week, the pair manages to offset most of its losses. For the longer-term picture, the pair still favours selling on a rise with the targets at the 1.2226 levels. In case if the pair falls below 1.2226, another steep fall will be triggered towards the 1.20 and 1.1800 levels. Today, traders turn full attention to construction output data, US core retail, retail sales, and consumer sentiment data. Ahead of the key economic data, the pair looks weak in early Asia’s session. French, German, Italian GDP, French non-farm payroll, and inflation data will be released during today’s session. A handful of events in today’s session results in high volatility. For an intraday session, the pair has support at 1.2435, below this at 1.2420 and 1.2395. We recommend buying above 1.2510 with the targets at 1.2533, 1.2560, and 1.2575. Selling below 1.2450 with the targets at 1.2420, 1.2395, 1.2375, and 1.2350.
Selling is preferable to buying. Use every rise to sell.
The material has been provided by InstaForex Company – www.instaforex.com