Euro Dollar: pressing 1.1600 after disappointing inflation in Germany

The EUR / USD pulls back from the high of 1.1641 and pushes the level to 1.1600 as the downward movement of the dollar seems to have ended after the pair reached a critical resistance level of 1.1660. The inflation indicators in Germany have behaved worse than expected after the intraday fall. Harmonized inflation with the EU in October fell by 0.1%, according to preliminary estimates, increased by only 1.5% per year, which is lower than expected at 1.8%. The US data. had a neutral effect on the pair, as the underlying inflation of the PCE was expected in September, unchanged from the time of August readings.

The pair recovers its intraday bearish tone, and according to the 4-hour chart, like the 20 SMA that bears a bearish trend, expected much higher than the current level. While the technical indicators resumed their descent within the territory of oversold and after a corrective fast movement. Below its current level of 1.1600 the pair can try again at 1.1574, the Friday low, while the subsequent drop can see a pair that has been tested at the 1.1540 level later in the day.

Support Levels: 1.1600 1.1575 1.1550

Levels of resistance: 1.1625 1.1660 1.1690


Written by FXStreet