Current trend
Yesterday, the European currency reached its lows at 1.0585 and started correcting up. At present, the pair is trading at 1.0620. The level of 1.0585-1.0570, where large trading volumes were seen yesterday, is considered as the key one.
Moreover, it is worth noting that a number of major banks, such as Goldman Sachs, have significantly reduced EUR/USD short positions. As many analysts suggest, these actions are already priced into the market. If it is so, a large correction in the EUR/USD pair is possible.
Support and resistance
As for technical indicators, no reaction followed the publication of Germany's GDP statistics, which showed a growth by 0.3% in the third quarter. On an annual basis, GDP was up by 1.8%.
Support level: 1.0585.
Resistance level: 1.0650.
Trading tips
Short positions can be opened after the breakdown of the level of 1.0585 with the target at 1.0450 and stop-loss at 1.6000.
As an alternative scenario, long positions can be considered if the price rebounds from the level of 1.0585.
Yesterday, the European currency reached its lows at 1.0585 and started correcting up. At present, the pair is trading at 1.0620. The level of 1.0585-1.0570, where large trading volumes were seen yesterday, is considered as the key one.
Moreover, it is worth noting that a number of major banks, such as Goldman Sachs, have significantly reduced EUR/USD short positions. As many analysts suggest, these actions are already priced into the market. If it is so, a large correction in the EUR/USD pair is possible.
Support and resistance
As for technical indicators, no reaction followed the publication of Germany's GDP statistics, which showed a growth by 0.3% in the third quarter. On an annual basis, GDP was up by 1.8%.
Support level: 1.0585.
Resistance level: 1.0650.
Trading tips
Short positions can be opened after the breakdown of the level of 1.0585 with the target at 1.0450 and stop-loss at 1.6000.
As an alternative scenario, long positions can be considered if the price rebounds from the level of 1.0585.