Buy EURUSD targeting 1.0600 with pending order at 1.0500

Fresh data describing the state of the US economy was released yesterday.

Experts' opinions on this issue are divided, as the information could be interpreted in different ways.

One group of economists concludes that consumer spending rose substantially in October, the US economy continues its solid growth, and progress in reducing inflation seems to have stalled.

Tuesday's minutes from the Federal Reserve's November meeting showed policymakers are uncertain about the prospects for a solid interest rate cut and how current rates are limiting the economy's overheating.

On the other hand, if one looks at the data, one can notice that the GDP for the third quarter declined by 0.2% compared to the second quarter.

The core orders for durable goods decreased to 0.1% from 0.4%.

The core personal consumption expenditures (PCE) price index declined to 2.1% from 2.8% in the third quarter.

The Chicago Business Activity Index fell to 40.2 from 41.6.

Wholesale inventories changed to 0.2% in October from the previous reading of -0.2%. It is also reflecting a decline in manufacturing activity.

The Pending Home Sales Index declined to 2.0% from the previous 7.5%.

Personal spending declined to 0.4% in October from September's 0.6%.

As can be seen from these examples, the reports provided contain a lot of data confirming the fall in consumer demand and the reduction of inflationary pressures.

From a technical point of view, the EURUSD currency pair continues to move upwards towards the level of 1.0600. In order to achieve this target, it will probably have to push back once again from the support at 1.0500.

The overall recommendation is to buy EURUSD from the level of 1.0500.

Profits should be taken at the level of 1.0600. A Stop loss could be set at the level of 1.0400. 

The volume of the opened position should be set in such a way that the value of the possible loss, fixed with the help of a protective Stop loss order, is no more than 1% of your deposit funds.