Outlook in EURUSD is neutral at the moment , the pair remains in recovery mode as long as support 1.2440 holds on a daily closing basis , next resistance comes at the 1.2503 levels , sustained trading – daily closing – above the 1.2503 levels will open main resistance at the 1.2600/1.2630 levels where fall resumption is suggested , however ; a clear break above the 1.2630 levels on a daily basis will turn outlook bullish towards the 1.2886/1.2994 levels.
On the downside , support comes at the 1.2485 levels ahead of the 1.2444 levels ( main) , losing the 1.2444 levels on a daily closing basis will bring a lower leg below the 1.2360 levels towards the 1.23300 levels where a cut will pave the way towards the 1.2200 levels…
In all , as long as support 1.2444/1.2485 holds on a daily closing basis , the EURUSD remains in recovery mode , and further upside couldn’t be ruled out towards the 1.2600/1.2630 levels , a clear break below the 1.2444 levels will suggest short term topping and pave the way towards the 1.2360/1.2300 levels even lower……….
Update : 09:25 am GMT
As shown on the 4 hour chart below , the pair failed to hold gains above the 1.2503 levels , as said yesterday and this early morning , 1.2503 is strong level confirmed by the 4 hour and the daily time frame , the German Unemployment Change (Nov) already released positively at -14 K , the positive German data was not strong enough to push the pair beyond 1.2503 levels , however , keys need to watched 1.2485 and 1.2444 levels , 4 hour closing below 1.2485 will build strong pressure on the 1.2444 levels , but note that as long as support 1.2444 holds , the pair could return to the 1.2503 levels even break higher !!!! since it’s holiday in US today , the pair is likely to consolidate within 1.2444/1.2500 range ….