The EUR/USD rose to its highest level since October 2 on Tuesday after Germany’s trade data beat expectations, boosting hopes the Euro Zone economy’s outlook remained robust. Exports outpaced imports adding to evidence that Europe’s biggest economy performed strongly in the third quarter, ignoring a stronger Euro.
Hawkish comments from a European Central Bank official also drove the EUR/USD higher. Sabine Lautenschlaeger, a member of the ECB executive board, called for the central bank to roll back asset purchases in 2018.
Daily Technical Analysis
The main trend is down according to the daily swing chart, but momentum has shifted to the upside.
A trade through 1.1832 will change the main trend to up. A move through 1.1668 will negate the closing price reversal bottom and signal a resumption of the downtrend.
The short-term range is 1.1832 to 1.1668. Its 50% level or pivot is 1.1750. This price is support.
The main range is 1.2033 to 1.1668. If the main trend changes to up then its retracement zone at 1.1850 to 1.1894 will become the primary upside target.
Based on the current price at 1.1792 and the earlier price action, we should have a bullish tone today as long as the EUR/USD hold above the support cluster at 1.1753 to $1.1748.
The daily chart shows there is plenty of room to the upside with the main top at 1.1832 the first target. Followed by the main 50% level at 1.1850.
Overtaking 1.1850 could trigger an acceleration into a resistance cluster at 1.1893 to 1.1894.