Solid News

Despite the dollar correction, the EUR/USD pair cannot continue to grow and is trading around 1.0358.

The report of the European Commission, formed based on a survey of business representatives and consumers of services, was published yesterday: it is expected that in November, the business consumer confidence index will remain at –23.9 points, the expected consumer inflation indicator will drop to 30.1 points from 37.3 points, while the index of expected selling prices may fall to 40.4 points from 44.8 points earlier, and manufacturing sentiment decreased to –2.0 points from –1.2 points earlier. In Germany, consumer prices in November lost 0.5% after rising by 0.9%, which led to a slowdown to 10.0% from 10.4% earlier YoY.

An additional driver of the upward movement of the EUR/USD pair was the dynamics of the US dollar, which fell to 106.500 in the USD Index after the publication of poor macroeconomic statistics: the Conference Board consumer confidence index in November was 100.2 points, which is lower than 102.2 points in the previous period. Thus, the indicator has been declining for the third month in a row, reflecting a negative trend in consumer spending.

On the daily chart, the trading instrument continues its corrective growth and is confidently holding above the resistance line of the local rising channel.

Technical indicators reversed upwards, strengthening the signal: fast EMAs on the Alligator indicator expand the range of fluctuations in the direction of growth, and the AO oscillator histogram forms rising bars in the buying zone.

Resistance levels: 1.0406, 1.0626. | Support levels: 1.0242, 1.0000.