The Euro traded higher against the US Dollar earlier today as the US election results came out, but later the EURUSD pair came crashing down.
EURUSD Weekly Analysis – Euro Spikes and Nosedives Post Trump Drama
· The Euro after an impressive ride towards the 1.1300 level against the US Dollar moved down.
· Donald trump won the US elections, and the market was surprised by the outcome.
· Today, the Chinese Consumer Price Index released by the National Bureau of Statistics of China posted a decline of 0.1% in Oct 2016.
EURUSD Technical Analysis
The Euro jumped higher towards the 1.1300 handle against the US Dollar today once Donald Trump led the results. The EURUSD pair later found sellers once the market settled, and the pair moved down.
The pair started correcting lower, and broke the 50% Fib retracement level of the last wave from the 1.0989 low to 1.1299 high. So, it looks like the pair may continue to move down, and trade further lower.
There is a major bullish trend line formed on the downside on the 4-hours chart of EURUSD, which can be considered as a buy zone near 1.10. The simple moving average (H4) chart may also act as a support and provide bids. So, it looks like the pair remains supported on the downside.
Trade Idea – If you are looking to enter a buy trade, then consider it near the trend line support area with a stop of around 30-40 pips.
Today, other than the US elections, the Chinese Consumer Price Index, which is a measure of retail price variations within a representative basket of goods and services was released by the National Bureau of Statistics of China.
The market was aligned for a no change in prices in Oct 2016, compared with the same month a year ago. However, there was a decline of 0.1%. In terms of the yearly change, there was a rise of 2.1%, which was just as the market expected.
When we look at the Chinese Producer Price Index, there was a rise of 1.2%, better than the market forecast. Overall, the risk sentiment was boosted, and may stay intact for some time this week.