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Today’s economic calendar does not contain any significant publications, and, most likely, the same dynamics of the market and the dollar will continue in the American trading session.
Tomorrow, volatility in the market, and especially in quotes of Asian and commodity currencies, will increase immediately at the beginning of the trading day, when important macro data on Australia and China will be published at 00:30 and 01:30 (GMT) (we wrote about this in in our yesterday’s review of AUD/USD: taking advantage of the weakness of the US dollar).
And at 13:30 will be published fresh (for December) data on inflation in the US. And here again, a decrease in indicators is expected, which can be perceived by market participants and sellers of the dollar as a signal to action (for the important events of the week, see the Most Important Economic Events of the Week 01/09/2023 – 01/15/2023).
EUR/USD rose strongly on Friday and Monday after the release of weak PMIs in the services sector of the US economy, as a result of which the dollar fell into a wave of sell-offs. Over the last 4 partial trading days, this growth was more than 2%.
At the time of publication of this article, EUR/USD was trading near the 1.0750 mark, moving in the medium-term bull market zone, above the support levels 1.0540, 1.0445 towards the key resistance levels 1.1010, 1.1130, separating the long-term bullish trend of the pair from the bearish one. Thus, above the support levels of 1.0540, 1.0445, long positions remain preferable.
In an alternative scenario, the EUR/USD pair will not be able to break above the local resistance level of 1.0757, which it has touched four times in the last 4 partial trading days.
The first signal for the resumption of sales may be a breakdown of the local support level of 1.0710, and a confirming one – a breakdown of the important short-term support level of 1.0658.
Support levels: 1.0710, 1.0658, 1.0600, 1.0540, 1.0500, 1.0445, 1.0370, 1.0190
Resistance levels: 1.0757, 1.0800, 1.0900, 1.1010, 1.1130
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Image and article originally from www.mql5.com. Read the original article here.