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Technical analysis of EUR/USD for January 08, 2016

Market Overview:

The Fed may still raise interest rates. The weakening economy in the eurozone is characterized by the slowdown in inflation, so the EUR/USD pair could weaken further. Today, the report on US Non-Farm Payrolls and US Unemployment Rate will be released. If the unveiled data does not match expectations and support the policy of interest rate hikes of the Fed, it can lead to reversal bias for the pair. From the technical point of view, we see a pattern "Three Little Indians" (picture-circle blue) on intraday charts, which indicates potential weakening.

Economic Data:

Today, the reports on French Trade Balance, French Industrial Production m/m, German Trade Balance, and German Industrial Production m/m will see the light of day. the United States will release its data on Consumer Credit m/m, Wholesale Inventories m/m, Unemployment Rate, Non-Farm Employment Change, and Average Hourly Earnings m/m. Amid this data, EUR/USD is likely to move with medium to high volatility today.

Technical Data's

Weekly Bias: Ranging

Daily Bias: Ranging

Today Technical Levels:

Breakout BUY Level: 1.0969

Strong Resistance:1.0963

Original Resistance: 1.0952

Inner Sell Area: 1.0941

Target Inner Area: 1.0916

Inner Buy Area: 1.0891

Original Support: 1.0880

Strong Support: 1.0869

Breakout SELL Level: 1.0863

!_EURUSD.jpg

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