Yesterday the pair strengthened amid Fed Chair Janet Yellen speech, in which she pointed out to the existence of substantial risks to world economy growth and the need to remain cautious with further tightening in the US. Her comments significantly pressured the Dollar that allowed the Euro to strengthen.
In addition, the pair was supported by poor data from Japan. In February, the Unemployment Rate grew from 3.2% to 3.3%, while Retail Sales fell by 2.3%.
Support and resistance
on the is moving horizontally while the price range is widening. However, the price remains above the upper border of the range. is growing and giving a moderate buy signal. is in the overbought zone and trying to turn down.
The indicators recommend waiting for clearer trading signals.
Support levels: 126.62 (local low), 126.16, 125.77 (24 March low), 125.00 (lower MA of ), 124.22, 123.57, 123.05 (9 March low), 122.45.
Resistance levels: 127.30 (11 and 29 March highs), 128.17 (16 February high), 128.75, 129.13, 129.80 (10 February high), 130.26, 130.63.
Long positions can be opened after the breakout and consolidation above the level of 127.30 with targets at 128.75, 129.00 and stop-loss at 126.60. Validity – 2-4 days.
Short positions can be opened after the breakdown of the level of 126.60 with the target at 125.00 and stop-loss at 127.50. Validity – 2-4 days.