FX.co ★ Trading plan for EUR / USD pair as of 04/12/2018

The first thing that should be noted today is the data on industrial production, whose growth rates can accelerate from 2.7% to 3.8%. This will be the reason for a slight strengthening of the single European currency. But then, everything depends on the text content of the minutes of the ECB meeting on the monetary policy. If it indicates that the quantitative easing program will not be extended, the single European currency will not be stopped by any growth. However, there is a high probability that the ECB board is inclined to the possibility of extending the program and does not rule out such an option. In this case, the euro will have to retreat seriously. In the US, the number of applications for unemployment benefits may increase by 28,000 due to the number of repeated applications, which indicates the growth of long-term unemployment. This is not the best signal.

The EUR/USD currency pair, as previously predicted, continued its upward movement to the next level of 1.2400, where it already felt resistance nearing to slow down. Now, we have a small pullback, drawing us two-digit candles. It can be assumed that there will be two possible variations in the temporary wagging within 1.2360 / 1.2400. First, the bull interest will be maintained and we will be able to fix above 1.2400 that paves the way to the level of 1.2450. Second, the bears will gradually enter the market as the wagging drags on.