MARKET INSIGHT: Parallel channel on the daily chart shows the euro on resistance trendline, with horizontal ceiling at around 1.20008, hinting of a potential downtrend. The downside could be technically confirmed by Stochastics showing overbought levels.High-impact news for today coming out from the Eurozone will be mainly Core CPI, to be released by 5:00 pm PH time.
If data turns out to be better-than-expected, the euro could be in for a bullish reaction. Conversely, if on the flip side, EURUSD could be bearish.Switching to H4 and H1 timeframes reveals further pullback, with potential entry for a short position below intraday support (S1) of 1.19537 and target at 1.19282 which is the next intraday support level (S2). Going long could be a breakout above pivot point (PV) of 1.19705, with target at 1.19960 or the intraday resistance (R1).Either way, once trade is in-the-money before the news release, possible options could be to close the trade right away, adjust stop loss to positive levels, or put a trailing stop and let the trade run as a safety measure.*
Comments and analysis reflect only the views of Asian Capital Markets at any given time and are subject to change at any time. Always trade with discretion and observe prudent risk management by putting the necessary target and stop levels.
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