EURUSD: Could weak data and double top stop Euro's rally ?
This week, Euro is the central focus with lot of data will be released. ZEW , IFO data, and Markit PMI.
EZ data in March performed very bad so I don't think EZ data this week will be bright.
Look at on the chart, EURUSD now stops at 1.1350 : It's a two month high: A meaningful resistance level.
Mario Draghi clearly is unhappy with current level of Euro and if he has a chance, he would talk down Euro.
Hence, the fear of lower Euro is obvious, and that why I don't think Euro could move higher.
If It breaks 1.1350, the door for next strong resistance level 1.1500 will be opened and definitely EURUSD will rally to that resistance.
However, like I said, the fear is still on the table, and a bounce at 1.1350 will form a Double top pattern for EURUSD.
One more thing, RSI indicator, I see it reached 70: It hasn't broken 70 since Oct 2015.
Combine two signal, I think EURUSD could back to Kumo cloud and at 1.1100 this week.
EZ data in March performed very bad so I don't think EZ data this week will be bright.
Look at on the chart, EURUSD now stops at 1.1350 : It's a two month high: A meaningful resistance level.
Mario Draghi clearly is unhappy with current level of Euro and if he has a chance, he would talk down Euro.
Hence, the fear of lower Euro is obvious, and that why I don't think Euro could move higher.
If It breaks 1.1350, the door for next strong resistance level 1.1500 will be opened and definitely EURUSD will rally to that resistance.
However, like I said, the fear is still on the table, and a bounce at 1.1350 will form a Double top pattern for EURUSD.
One more thing, RSI indicator, I see it reached 70: It hasn't broken 70 since Oct 2015.
Combine two signal, I think EURUSD could back to Kumo cloud and at 1.1100 this week.
