The mixed US data pushed the US dollar down against most of the pairs. The US consumer confidence report was weak, but the GDP expands more than the forecast in the 3rd quarter. The euro stood high against the US dollar, gaining 30 pips. In yesterday's session, the pair faced resistance at 20Dsma or 1.2490 levels. In case if the pair breaches 1.2490, it has another multiple resistance at 1.2510. We recommend fresh intraday buying only above 1.2510 with the targets at 1.2575 and 1.2610. The hourly stochastic is indicating buying signal. Risky traders can buy at the 1.2490 levels. On the down side, the pair has support at 1.2440, 1.2400, and 1.2358. In the hourly chart, the prices are making a double bottom at the 1.2358 levels. The panic will be triggered below 1.2320 with the targets at 1.2250 and 1.2226. In case if the prices close below 1.2226, the pair can extend its fall up to 1.2100. In case, the prices close above 1.2600, further 200 pips upswing will ignite (1.2770 or 1.2880). For the near term, 1.2600 is the key level on the bullish front and 1.2350 and 12320 are the key support levels on the support side. The focus shifts to tomorrow's German prelim CPI, Spanish Flash CPI, German unemployment data, and the OPEC meeting. Huge volatility existed in the system ahead of the major key economic events.
Trade:
Buying above 1.2510.
The material has been provided by InstaForex Company - www.instaforex.com
