The pair managed to bounce from a 2-week low thanks to support at 1.0820. The pair managed to hit the resistance 50Dsma.
German import prices declined by 0.6%, less than forecasted. According to the Federal Statistical Office, the import prices index decreased by 0.6% in April 2015 compared with the corresponding month of the preceding year. Besides, data from the US was strongly positive.
Today's events: Today is a big day. German retail sales, Spanish flash CPI y/y, Italian CPI m/m, and private loans y/y are due today. German data is ambiguous. The Spanish readings improved a lot compared to recent data. The ECB intends to improve the private loans. Besides, the US prelim GDP q/q is due.
Technical view: The pair managed to hold the 1.8020 levels bounced from the lows. The support zone is found at 1.0820 and 1.0800. At yesterday's session, we recommended buying and selling, but buying trade triggered 30 pips only. Intraday support is found at 1.0950, 1.0925, and 1.0900. In the H1 chart, we observe higher low and higher high formation. We change our intraday trading view to buying with sl 1.0865 with targets at 1.1000, 1.1020, 1.1040, and 1.1050. At the Asian session, the pair was trading at 1.0958 compared to Thursday's closing price of 1.0948. For bears, selling opportunity will arise below 1.0860, at 1.0820 and 1.0800. The real selling will emerge only below 1.0785 towards 1.0730 and 1.0650. Weekly resistance is seen at 1.1075 20sma. Until bulls manage to hold 1.0800, they will aim at 1.1070 or even 1.1100. The trading pattern is framed between 1.0800 and 1.1075. Break into either side will provide further room towards 1.0550 or 1.1208/1.1250. On Wednesday and Thursday, we forecasted positive divergence in the hourly chart. It resulted in the recent 100 pips pullback.
The material has been provided by InstaForex Company – www.instaforex.com