Monday, 28 November 2016

EUR/USD Rocks The Cradle Of Uncertainty

A slight elevation was seen today during the European session on the EUR/USD pair, having marked an intraday high at 1.0687. Bur shortly afterwards the pair was down and posted a low at 1.0564.
It’s a quite important week for the US dollar with the NFP data upcoming on Friday, along with the preliminary estimates on Q3 GDP and the ADP numbers on Wednesday. Meanwhile Europe is offering a major event with risk behaviour on markets – the Italian referendum. The coincidence and the combination of these fundamentals implies strong influence on the pair. 
Considering the above the pair is teased to try levels higher that 1.0600. In anticipation of the development it’s not clear yet weather the bulls will be strong enough to conquer higher levels or will step down and retest the 1.0500 level.
RSI is currently located around 45 and is displaying lack of momentum. Stochastic is recovering from the oversold area and showing weak bullish signs.
Resistance is seen at 1.5898 (the 200-day SMA) and next is placed at 1.6022 (the 20-day SMA). The 100-day SMA is acting now as a support and is currently being at 1.5898. The key support remains the 1.0550 level. 
Currently both fundamentals and technical readings are not talking sure enough to set clear direction for the pair. So in this uncertain situation I'm going be only an observer.