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EURUSD : Seems Supported after German Consumer Climate

EURUSD : Hourly Chart

EURUSD seems supported today on the hourly chart as it broke out from the falling channel trend however it continued to follow a narrow sideways pattern with support at 1.2632 and resistance at 1.2663. The gains in EUR are supported by upbeat German consumer climate data although the trend still seems downtrend according to the moving averages, so it might continue to decline breaking below the support at 1.2632.The data showed that the Gfk German consumer climate index rose to 8.5 in October from 8.4 in September, which economists were expecting to decline to 8 this month.

EURUSD : Hourly Chart

If we insert Fibonacci retrenchment levels on the chart, we can see that the pair is currently facing resistance from the 23.6 fib level. A bullish trend will only emerge when the pair will break above the 200 day SMA or 50 fib level.

EURUSD : Daily Chart

On the daily chart, we can see that the pair was following a rising channel trend within a broader symmetrical triangle trend from which it broke down and now testing the support at 1.2605. It might rise from this support for a while as in the stochastic oscillator the pair seems to be almost in the oversold zone. Although the overall trend still remains downtrend so the gains would be limited. Also the demand for US dollar will continue to weigh on the pair and will continue to create a selling pressure on EUR.