Market Outlook
EURUSD towed to the south as data remain depressed. - Zeal Capital Market

EURUSD towed to the south as data remain depressed.

06-01-2023 08:05

“Holiday season failed to boost Germany’s consumer spending; towing euro lower.”

Euro head towards the south soon after Germany released their economic data which may point towards depressed conditions. For November, both Retail Sales and Factory Orders underperformed even though the country is heading towards the holiday season. Likewise, US ADP latest report shows strong hiring in the private sector for last month, spurring expectation for further tightening from the Federal Reserve.  

Quick recap on EURUSD

Euro took a sharp turn after second retest near 1.0706, cutting short its recovery momentum and skewed overall biasness towards the south.

EURUSD Weekly Technical Analysis

EURUSD towed to the south as data remain depressed. - Zeal Capital Market

As we approach the end of the week, EURUSD stages significant reversal which may cement a divergence in its course of price action for the near-term.

EURUSD Daily Technical Analysis

EURUSD towed to the south as data remain depressed. - Zeal Capital Market

From daily perspective, MACD shows persistent bearish divergence signal which portrays high skewness towards the downside.

Trading Idea

EURUSD towed to the south as data remain depressed. - Zeal Capital Market

ORDER: SELL

ENTRY: 1.0500

STOP LOSS: 1.0570

Target 1: 1.0430

Target 2: 1.0400

ZFX Analyst’s Comment

Recent price action shows higher possibility for a downside feat as bears takeover and steer the pair.

Risk Warning: The above content is for reference only, and does not represent ZFX’s position. ZFX does not assume any form of loss caused by any trading operations carried out in accordance with this article. Please be firm in your thinking and do the corresponding risk control.

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