EUR/USD still under the gun but above 1.3152 Fibonacci target

FXstreet.com (Barcelona) - The short-term oversold EUR/USD tested the second of two Fibonacci projections at 1.3152 on Tuesday and may have started to base sideways ahead of the rest of the week’s news.

Time for euro data to take the stage

The EUR/USD fell once again Tuesday (thanks in part to stronger ISM Manufacturing data) but finished off the lows and just above Fibonacci support at 1.3152. There will be plenty of data out the rest of this week that will drive the trading in EUR/USD:

• Wednesday: Services PMI readings from all over Europe; EuroZone GDP; EuroZone Retail Sales; US Trade Balance; US Fed Beige Book; Fed’s Dudley speaking
• Thursday: Fed’s Kocherlakota speaking; German Factory Orders; ECB Interest Rate Decision; US ADP Employment Change; US Weekly Jobless Claims; US Non-Farm Productivity & Labor Costs; US Factory Orders; US ISM Non-Manufacturing PMI
• Friday: German Industrial Production; US Monthly Employment Report

Technical outlook for EUR/USD

Technicians say EUR/USD has broken down short-term, but that it now rests at Fibonacci support at 1.3152. As it is oversold, they say traders should fully expect a modest correction over the coming days. Resistance comes into play at 1.3297.