The pair managed to erase most of the losses last week, but still remains below 20Wsma at 1.1050 for four weeks in a row.
However, things should pick up rapidly by tomorrow as we have a number of high-impact data releases, starting with the German ZEW economic sentiment on Tuesday and German Prelim GDP q/q basis.
Weekly forecast: The pair closed and is now trading below 20Wsma at 1.1050. The weekly support is set at 1.0840 and 1.0800. Weekly resistance seems at 1.1020 and 1.1050.
Until the pair closes above 1.1050, use a rise to sell between 1.1000 and 1.1020. On the daily chart, the pair managed to close above 20Dsma on Friday’s session after it was holding for 8 days at 1.0940. Except 20Dsma, the pair lost all the daily moving averages and looks lacking strength.
Intraday: Earlier, the pair made multiple supports between 1.0848 and 1.0856 levels. Intraday support is placed at 1.0940, 1.0920, and 1.0870. Resistance seems to be at 1.0980, 1.1000, and 1.1020. The pair is trading at 1.0955 at today’s Asian session. Intraday selling pressure is likely to be below 1.0940, then it will accelerate below 1.0900 aiming at 1.0880,1.0860, and 1.0810. Panic is likely to be triggered below 1.0800, towards 1.0785 and 1.0740.
Buying available above 1.0970 aims at 1.0985 and 1.1000, in the extreme case the target at 1.1020 is possible.
The material has been provided by InstaForex Company – www.instaforex.com