Technical analysis of EUR/USD for January 07, 2016

Market Overview:

Entering the new 2016 year, we were struck by two important events. The first one is geopolitical conflicts between UAE and Iran, and the second event is the hydrogen bomb test by North Korea. Both of these events worry market participant so they choose USD as safe-haven instrument. No wonder most major currencies are experiencing bearish condition, especially the euro.

Economic Data for Today:

The eurozone will release the data on Retail Sales m/m, Retail PMI, and Unemployment Rate. Reports on Italian Monthly Unemployment Rate, German Retail Sales m/m, and German Factory Orders m/m will see the light of day as well. Statistics on Natural Gas Storage, Unemployment Claims, and Challenger Job Cuts y/y will be unveiled in the United States. Amid the data, EUR/USD is likely to move today with low to medium volatility.

Technical Data for Today:

Weekly Bias: Down

Daily Bias: Ranging

Technical Levels for Today:

Breakout BUY Level: 1.0829

Strong Resistance: 1.0823

Original Resistance: 1.0812

Inner Sell Area: 1.0801

Target Inner Area: 1.0776

Inner Buy Area: 1.0751

Original Support: 1.0740.

Strong Support: 1.0729.

Breakout SELL Level: 1.0723.

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