Forex: technical overview 12.01.18

EURUSD

The pair is trading within the range of 1.915–1.2075, closer to its upper edge following the release of the weak industrial inflation data in the US this Thursday. If today’s figures on the consumer inflation turn out to be weaker than predicted, the pair is likely to go further up, but in the opposite case, the price is likely to go down to the lower edge of the current range.

The price is above the middle line of the borders of Bollinger bands, above EMA 5 and EMA 13. RSI grows smoothly. Stochastic oscillators are entering the overbought territory.

Trading recommendations:

If the pair breaks out the level of 1.2035 because of the negative outlook, the price may go up to 1.2120. At the same time, in case of positive news, the pair may go down to 1.1915 and then further down to 1.2035.