EURUSD
The pair's current growth is driven by two factors. The first is the USD sell-off, which is caused by the market's uncertainty on whether the inflation data will display growth. The second is the investors' hopes of the ECB canceling the economic stimulus measures for the eurozone as early as the next year, after reducing the asset purchase volumes as a part of its QE policy, as was hinted at in the bank's representatives' speeches.
The price is above the middle Bollinger band, above SMA 5 and SMA 14. RSI is in the overbought zone. Stoch are also there.
Trading recommendations:
If the industrial inflation data turns out to be positive, the pair may locally reverse down to 1.1800, but if they are weaker than expected, the price will go further up to 1.1925.
Author: Semyon Kamensky