Forex Camping

EUR/USD. The price consolidates after rising momentum.

FX:EURUSD   Euro Fx/U.S. Dollar
50 0 1
The European currency has significantly strengthened its position against the U.S. Dollar on Thursday, February 6, after the European Central Bank chose not to announce any new measures of easing the monetary policy . The trading day ended in favor of the Euro             , which strengthened against the U.S. Dollar by 54 points, the volatility was 137 points.

Having a look at H4 chart we may notice that the consolidation within the price range of 1.34775 - 1.3540 has ended with the breakdown of its upper border, which led to increased bullish sentiments and as a result our first goal for yesterday 1.3590 was reached during the European session.

From the fundamental point of view, the Euro             has received considerable support after a monthly press conference, during which Mario Draghi, the head of the ECB, said that the policy will remain unchanged and if required, the additional measures will be taken.

Technical overview:

The pair is capped between the moving averages with a period of 144 (resistance level of 1.3600) on the one hand and averages with periods of 89, 55 and 34 on the other.

MACD histogram has crossed the zero line upwards, is currently located in the positive zone, above its signal line and continues to rise smoothly and thus delivers a buy signal for the Euro             .

Stochastic Oscillator is near to overbought zone and forms unclear, but opposite signal as the %K line has crossed the %D line from the top down, but has not yet begun to fall below it.

Due to uncertainty of the signals, delivered by technical indicators, the best solution now is to stay out of the market and focus on the next strong support and resistance levels.

There are two possible scenarios for EUR/USD:

1. Break through the resistance level of 1.3600 and growth of EUR to the levels of 1.3650, 1.3695 and 1.3740 (local high).

2. Break through the support levels of 1.3565 and the decline of the pair to the levels of 1.3540 and 1.34775 (local low).

Read full view here: https://www.forexcamping.com/newsdetail/technical-analysis-of-eurusd-for-february-07/
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