The market sentiment report shows that 47.99% of traders are buying the euro and 52.01% are selling. This data could mean a range of movement for the euro in the coming days. In view of the approaching year-end holidays, market liquidity is likely to decline, which could lead to unexpected volatility moves.
The Euro is expected to trade in the coming days below the psychological level of 1.10 or below 6/8 Murray at 1.0986. Range support is located around the 5/8 Murray at 1.0864 or around the 200 EMA at 1.0878.
Euro has been showing some recovery since December 15th when it reached oversold levels, and now it is expected that it could continue to move higher and reach the resistance area of 1.0972 or 1.0986, both levels are seen as an opportunity to sell, only if it consolidates below this area.
The psychological level of 1.10 could also offer some resistance to the euro and could be seen as a signal to sell with targets at 1.0864.
On the other hand, in case the euro falls below 1.0924 (21 SMA) the downtrend is expected to resume and it could reach 1.0878 and if it breaks the downtrend channel, we could expect it to reach 4/8 Murray at 1.0742.
Our trading plan for the next hours is to buy the euro above 1.0924, with targets at 1.0950 and 1.0986. Around this resistance zone we could sell with targets at 1.0920 and 1.0865.