EURUSD: Recovers With Caution!
The outlook in EURUSD has turned neutral at the moment, support comes at the 1.1478 levels while resistance comes at the 1.1544 levels. The EURUSD will have to break and hold above the 1.1544 levels on a daily closing basis to prevent a return to the downside if seen it will target 1.1590 levels with a break above here opening the way to 1.1638 levels, further upside, resistance stands at the 1.1756 levels.
A daily closing above 1.1544 will activate the bullish divergence and increase the risk for 1.1638/1.1756 levels.
Alternatively, a failure to hold above 1.1544 levels on a daily closing basis could mean a return to the 1.1478 levels, a cut through support will aim the 1.1407 levels with a break below here paving the way to 1.1390 levels.
Conclusion: The EURUSD sees recovery threats above 1.1478 levels with caution, above 1.1544 will pave the way to 1.1638/1.1756 levels while below 1.1478 will restore the downside momentum and aim the 1.1407 levels.
Support : 1.1478, 1.1407, 1.1350, 1.1290,
Resistance: 1.1544, 1.1590, 1.1638 1.1668
1- ECB Publishes Account of Monetary Policy Meeting: today at 11:30 GMT
2- U.S Inflation Data
U.S data may bring a buying opportunity today.
The U.S will report on consumer price index for Sep today at 12:30 GMT. The indicator is expected to remain unchanged at 0.2% as the previous month. Any reading above 0.2% will support the USD while any reading below 0.2% will support the EURO against the USD.
Core CPI is expected to rise 0.2%, from 0.1% in the preceding month. Any reading above 0.2% will support the USD while any reading below 0.2% will support the EURO against the USD.