Two trades to watch: FTSE, EUR/USD
Fiona Cincotta January 29, 2021 3:55 PM
FTSE trades at monthly low as the mood in the market sours EUR/USD tests 1.21 ahead of German Q4 GDP data
FTSE trades at monthly low
An attempted recovery would need to clear 6550 yesterday’s high in order to advance towards 6650 the confluence of the descending trend line and 50 sma. A break above this level could negate the current bearish trend.
EUR/USD tests 1.21 ahead of German GDP data
EUR/USD is testing 1.21 amid a downbeat market mood and ahead of the German GDP reading.
Whilst Germany has been in lockdown hitting activity in the service sector, the manufacturing sector has remain resilient. A better than forecast reading could help boost the Euro against the safe haven lifted USD.
French GDP contracted less than forecast in Q4 -1.3% vs -4% expected, annually contracted -8.3% vs 11% forecast.
EUR/USD technical analysis
EUR/USD remains on the defensive after falling through the 50 sma on the 4 hour chart yesterday bringing attention to 1.2050 horizontal support. This appears to be a solid support and may not be easy to break through.
Should the price crack this level, September’s high and key psychological level 1.20 will come into target.
Should 1.21 hold an attempted recovery will see resistance at 1.2140/5 level the confluence of the 50 sma an the descending trendline. A move above 1.2180 could see more bulls jump in.
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