The Euro Is Well Supported Ahead GDP Data And Draghi’s Speech

• 14 Nov 2017

EUR/JPY

The EUR/JPY pair has broken the 20- period EMA to the upside and is also close to the 132.97 price level which has been acting as a resistance line for the pair. RSI provides support for a bullish break with an upward trajectory and despite MACD having a downward trajectory, the indicator is yet to break the zero line. A momentum reversal on MACD and break of the 132.97 price level provides weight to the uptrend.

Impact event: Eurozone GDP data will be released and ECB President Mario Draghi will speak at 12 GMT+2. Both events will impact Euro pairs.

EUR/USD

After struggling against the U.S. Dollar since the beginning of September, the Euro is beginning strengthen. The pair has retraced against an extended downtrend and is now approaching the 1.17 support level after 4 consecutive bullish candles. On Fibonacci, the pair is also approaching the 23.6 Fibo level which coincides with the 1.17 support level. Clearly, a break of this line will be significant with a break providing weight to the uptrend. RSI supports the uptrend with a strong upward trajectory.

EUR/GBP

The EUR/GBP pair has been in a descending trend since late September, however, the pair appears to be on the verge of breaking out of the descending trend-line. The Pound suffered a sharp sell-off in yesterday’s trading session amidst news that Prime Minister May would receive a vote of ‘no confidence’ from her party.  If the pair is able to break through the upper trend-line, the uptrend could be significant. However, there appears to be little support for the move; MACD is descending towards the zero line and volume is declining.

EUR/CAD

A strong break of the 20- period EMA for the EUR/CAD could mark the revival of a previous uptrend for the pair. Three consecutive bullish candles and a sharp upward trajectory on RSI indicate momentum has turned sharply bullish. MACD is approaching the zero line but is considered a lagging indicator and may not fully reflect the current direction of momentum.