EUR/USD made a high of 1.1344 today due to major support at 1.1260. Bears were not able to push price below support and bulls successfully brought the pair back into the ascending trading channel. Major bull target 1.1530.
Yesterday EURUSD initially fell but found enough buying pressure to turn around and closed in the green, near the high of the day, however closed within Fridays day range, suggesting a weak bullish momentum.
The pair is trading below the 10-day moving average that is acting as a dynamic resistance but is above the 50 and the 200-day moving averages that are acting as dynamic supports.
The key levels to watch are: A daily resistance at 1.1459, the 10-day moving average at 1.1334 (resistance), the previous swing high at 1.1342 (resistance), a daily support at 1.1237, the 50-day moving average at 1.1186 (support) and a previous swing low at 1.1144 (support).
The euro recorded minor increase against the dollar on Monday. The single currency started the new week tentatively as the session was volatile. Bullish sentiment prevailed almost throughout, but after it was peaking for the day at 1.1331, euro losses accumulated lead. Thus, the finish line was crossed at a rate of 1.1310, only 9 pips above the opening price. Short-term expectations are in favor of the euro and thus the resistance at 1.1407 remains threatened.
EUR/USD continued climbing today and it's likely it will soon reach 1.1400 - 1.1440. Mario Draghi will speak again tomorrow, perhaps that will finally cause the end of the consolidation, but I am not holding my breath at this point.
victoriajensen posted: EUR/USD continued climbing today and it's likely it will soon reach 1.1400 - 1.1440. Mario Draghi will speak again tomorrow, perhaps that will finally cause the end of the consolidation, but I am not holding my breath at this point.
Yesterday EURUSD rose with a wide range and closed near the high of the day, in addition managed to close above previous day high, suggesting a strong bullish momentum.
The pair also managed to close above the 10-day moving average that should now act as a dynamic support as well the 50 and the 200-day moving averages.
The key levels to watch are: A daily resistance at 1.1556, other daily resistance at 1.1459, the 10-day moving average at 1.1333 (support), the previous swing high at 1.1342 (support), and a daily support at 1.1237.
Euro/dollar made upwards momentum yesterday, closing back above 1.1335. The outlook is bullish in nearest term for testing 1.1500, but not yet in the bullish pattern. Overall technical outlook remains neutral and we have a potentially strong resistance between 1.1500 - 1.1700. Immediate support is around 1.1335 - 1.1300. A clear break back below that area could lead price to neutral region for testing 1.1230/00.
BofA Merrill do not believe that regulators will be able to ensure sustainable reduction in foreign exchange rates. According to experts, EUR/USD will continue to move in range. For a decline of EUR/USD will be needed positive data on the US economy, particularly inflation. Benefits would be and stabilization in global stock markets, in which case investors may revise their expectations about the future course of action of the Federal Reserve.
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