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EUR/USD – 1.1820
Despite yesterday’s sideways swings following early retreat from 1.1845 to 1.1800 on Tuesday, as this move signals recovery from Monday’s 1.1771 low has possibly ended, downside bias remains, a daily close below 1.1800 would encourage for resumption of decline from September’s 1.1908 peak, however, loss of downward momentum should keep price above 1.1730/35.
Only above 1.1845/51 res area dampens bearish outlook and may risk stronger gain to 1.1884/86 but only break there would yield subsequent re-test of 1.1908.
Data to be released on Thursday:
New Zealand GDP, Japan exports, imports, trade balance, Australia consumer inflation experience, employment change, unemployment rate, RBA Bulletin.
Italy trade balance, EU trade balance.
Canada housing starts, wholesale trade, ADP employment change, U.S. initial jobless claims, continuing jobless claims, Philly Fed manufacturing index, retail sales and business inventories.