Eurusd Trades Under Resistance

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Eurusd Trades Under Resistance

Eur/Usd Trades Under 1.0650 On German Data

EUR/USD trades are below 1.0650 and appear to be consolidating losses on Tuesday. It seems that the sentiment has turned against the EUR after the release of weak Germany's Sentiment data.

The weakness in the sentiment is likely due to the fears that Trump will impose tariffs. At the same time, the chances of a rate cut by the ECB have also increased.

1.0600 Acts As Support For Eur/Usd

The bigger picture shows that the 1.0600 handle is now serving as support. However, the EUR/USD is still in the bearish phase on the D1 chart.

The majority of the technical indicators also print at negative levels. At the same time, no indicator is in the oversold area, meaning there are few chances of exhaustion. Also, the 20 SMA is developing below the 100 SMA and even the 200 SMA.

However, the 4-hour chart shows that EUR/USD is in the oversold territory. However, it is still not extreme enough to warrant a reversal in the pair.

The support levels for the EUR/USD are seen at 1.0600 and 1.0565. A break of these 2 levels means a revisit to the 1.0520.

The resistance levels for the EUR/USD are found at 1.0640 and 1.0685. But if the Euro bulls break these levels, the next rest-stop for the EUR will be 1.0720.

However, the bottom line is that German data was weak and is now weighing the Euro. The ZEW Survey showed that sentiment was worsened in November.

The index declined from 13.1 to around 7.4 in November. This was below the forecast of 12.8, which shows that the ground conditions have changed a lot.

The sentiment has declined due to Trump's victory. Any tariffs from the USA will worsen the conditions for the already struggling manufacturing sector. Also, Germany is going through turbulent times after the collapse of a coalition government.

In the short-term, the 1.0600 is acting as support while the 1.0695-1.0700 will be a key resistance area.

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