Weekly key economic data-
The pair has some important key events this week. Traders eye Tuesday's German Zew Economic sentiment. This index has been falling for 9 months. In September it came in at 6.9. Again, we expect a downfall in this index. The industrial production data will be released on Tuesday as well, we expect another downfall. On Wednesday the Draghi speech and German final CPI data are set for release.
Weekly forecast
The pair made a minor double bottom at 1.2501 and faced strong resistance at the 61.8 fib level in the weekly chart at 1.2791 levels. In the daily chart, the pair breached the 20Dsma on an intraday basis, but failed to close above that. In case, if the pair closes above 20Dsma, the weekly trend turns positive until bears have an upper hand. For a weekly basis, the pair has resistance at 1.2715 and 1.2735, above these, 1.30 50Dsma will act as strong resistance. On the down side, 1.26 and 1.2570 will be minor support levels. 1.25 will act as a key support level, below this, we can expect a free fall to 1.22 200Msma levels.
Recommendation- for an intraday view, the prices have been trading below the hourly key moving averages 12ema and 21hrsma. The pair is facing strong resistance at 1.2650, a 8hr high, above this, 1.2680 (21hrsma) is acting as a strong resistance level. In the h4 chart, the support region is between 1.2580 and 1.26. At the current market price of 1.2626 we recommend buying for an hourly target at 1.2680, 1.27, 1.2710 and 1.2720 levels. We recommend selling below 1.26 for targets at 1.2584, 1.2570, and 1.2540 levels.
Trade- Buy at cmp 1.2626
The material has been provided by InstaForex Company - www.instaforex.com
