On the other side, the Fed is worried about rising rates too soon, as global recovery is stagnating, other economists see it as an opportunity for the Fed to raise rates soon as they see the American economy is strong enough to sustain rising interest rates. Rising rates too soon might cause the US economy to fall back to where it started from. Looking at oil prices, they have been inching up as Libya is threatened to stop pumping oil into the world economy after ISIS took over valid oil cities in the country. On the other hand, this week, we saw oil prices drop as an unexpected rise in crude inventories showed.
We also saw Walmart rising wages for 500 jobs one of the biggest retailers in the U.S. after beating profit estimates. This is a very good sign that the American economy is strengthening up. This move might encourage other U.S. businesses to raise wages, which is a very important factor the Fed is looking at, at its decision to raising rates.
With the Fed is closer to rising rates, and the ECB is closer to introducing , this pair is fundamentally .
Technically, the pair has been performing lower highs in contrast to higher lows, indicating confusion in the market. This has created a triangle denoted in the two red dotted lines. If prices close below the lower support red line and the blue dotted line (for further confirmation), we might see the prices finding support at the 28th of January strong support line denoted in the green dotted line. In that case, I would wait for prices to push back up to the 1.3028 level (support of the blue circle). If prices failed to break above that line, then I would take a short position riding the wave down to 1.11.
UPDATE (26/02/2015): The pair broke the lower red line support and also the 1.1300 and closed below it just as the above chart shows, watch for a little green retracement to trigger your short position and follow the trend down. Good luck