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Investments in financial products are subject to market risk. Some financial products, such as currency exchange, are highly speculative and any investment should only be done with risk capital. Prices rise and fall and past performance is no assurance of future performance. This website is an information site only.

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Technical analysis of EUR/USD for January 07, 2016

Market Overview:

Entering the new 2016 year, we were struck by two important events. The first one is geopolitical conflicts between UAE and Iran, and the second event is the hydrogen bomb test by North Korea. Both of these events worry market participant so they choose USD as safe-haven instrument. No wonder most major currencies are experiencing bearish condition, especially the euro.

Economic Data for Today:

The eurozone will release the data on Retail Sales m/m, Retail PMI, and Unemployment Rate. Reports on Italian Monthly Unemployment Rate, German Retail Sales m/m, and German Factory Orders m/m will see the light of day as well. Statistics on Natural Gas Storage, Unemployment Claims, and Challenger Job Cuts y/y will be unveiled in the United States. Amid the data, EUR/USD is likely to move today with low to medium volatility.

Technical Data for Today:

Weekly Bias: Down

Daily Bias: Ranging

Technical Levels for Today:

Breakout BUY Level: 1.0829

Strong Resistance: 1.0823

Original Resistance: 1.0812

Inner Sell Area: 1.0801

Target Inner Area: 1.0776

Inner Buy Area: 1.0751

Original Support: 1.0740.

Strong Support: 1.0729.

Breakout SELL Level: 1.0723.

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Disclaimer: Trading Forex (foreign exchange) on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial adviser if you have any doubts.

The material has been provided by InstaForex Company - www.instaforex.com