The Euro was seen trading higher against the US dollar as the latter one got weakened across the board. There is a chance that the EURUSD pair might correct lower from the current levels and provide us a buying opportunity in the near term. The recent economic releases were not on the positive side so we might witness a minor correction which can be considered as a buying opportunity.
There is a monster support forming around the 1.2360 support area, which might act as a hurdle for the Euro sellers. The most important point is the fact that the 200 moving average is also sitting around the mentioned level. So, a lot buying interest can be seen around the 1.2360-80 levels. If the pair moves a bit lower from the current levels, makes a stop around the support area and creates a bullish divergence, then we might enter into a buy trade.
Initial target should be around the 1.2440 level, and final target could be around the 1.2520 level. Stop should be placed below the 200 MA.
Reviewing recent events and trades
Yesterday, there was no major release in the US. During the London session, the UK trade balance data was released, which was mostly positive for the British pound. The GBPUSD pair was seen trading higher after the release. Earlier during the Asian session, the Australian employment data was released, which came in around the expectation and lifted the Aussie dollar. The AUDUSD pair climbed higher but later failed to continue trading higher and moved lower again.
Fundamental Outlook for the day
Today, the US retail sales data will be published, which is expected to register a gain of around 0.3%, which is close to the previous reading. If the outcome misses the forecast, then the US dollar might continue trading lower for some time. However, on the other hand, if the outcome comes better than expected, then we can see dollar gaining ground again. During the next Asian session, the Chinese industrial production data will be published which can cause some moves in the Asian pairs in the short term.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: GBPUSD, GBPCHF, AUDCAD, USDCAD, USDJPY, CADJPY, AUDJPY and NZDUSD.
Get it HERE: Vladimir’s Markets Forecast
Trade carefully friends. Happy trading!
