The economic sentiment indicator for the EU fell to 32.8, German pollster ZEW data showed. This is the worst result since April when the first wave of the coronavirus adversely affected the euro zone economy. It could further weaken EUR/USD.
Yesterday, the EUR/USD pair failed to break above resistance at 1.1840 a key area. If it consolidates above this level, it could give it a new upward impulse to the area of 1.1901 and 1.1962.
The pair is under bearish pressure as you can see on the 4 hour chart, it is trading below the pressure line SMA 21 days and below the 2/8 of the murray resistance.
On the other hand, as long as it remains below 1.1810 it would be a good start to sell off, as the eagle indicator is showing a sign of overbought, and with a possible bearish bias in the short term.
Our recommendation is to sell below 1.1810 with targets at the 1.1758 zone of the EMA 200 days, and the 1.1725, level of the 0/8 Murray support.
The daily chart of the euro dollar is showing a bullish signal, which may give it strength to resistance levels of 1.2020 in the medium term, so be careful, the key level is 1.1750, this area should be monitored in the medium term to buy.
According to market sentiment, 72% of investors are short, this shows us that in the medium term this pair could continue to rise to levels of 1.19 and 1.1960.
Our Forecast for November 11:
- Sell if pullback to 1.1840 with take profit in 1.1758 and 1.1725, Stop loss above 1.1870
- Buy above 1.1845 with target 1.1901 . Stop loss, below 1.1810
Our support and resistance levels for November 11,
Resistance (1) 1.1841 Support (1) 1.1778
Resistance (2) 1.1873 Support (2) 1.1746
Resistance (3) 1.1905 Support (3) 1.1714The material has been provided by InstaForex Company - www.instaforex.com