The Single currency popped to a high of $1.2413 yesterday before tumbling to a low of $1.2335 following weak German ZEW results, signalling a deterioration in Investors’ confidence in the European theatre.
The possible reasons behind the latest downturn in investors’ sentiment seem to stem from both geopolitical tensions and the recent trade battle between the U.S and China.
Besides, today’s soft European CPI data which showed consumer prices rose at an annualized 1.3% vs. the preliminary gains of 1.4% is likely to add fuel to the dovish ECB’s minutes last week.
On the technical side, the EUR/USD may have ended his 11 days corrective rally from $1.2215 to $1.2413 yesterday, as it is looking increasingly tough for the pair to stay upright, following the slew of recent weak economic data out of the Eurozone.
On the 30 mins Chart, based on a bearish Gartley reversal pattern, the EUR/USD may find strong resistance near $1.2397/1.2405 today and could possibly turn lower, “en route” to $1.2235/55 zone in the coming days!.
However a break above $1.2412 may send the pair to $1.2445 followed by $1.2475.
Scenario 2- Continued sideways consolidation in an Elliott wave bullish triangle pattern!
Wave D may have ended at $1.2413 yesterday and price might turn lower in the range of $1.2220/1.2300 to complete wave E of a bullish triangle pattern
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