EUR/USD remained downwards-tended until mid-Friday when it reversed from the 100-hour SMA near 1.1740. By this morning, it has breached the monthly PP and the 55-hour SMA. It seems that the rate might still edge higher in this session, with the upper limit being the weekly R1 and an upward-sloping trend-line circa 1.1870.
Advance above this mark is not expected during the following two days, as the Euro is starting to diminish its trading range within a two-week channel up.
In terms of support, it is likely that bears lack the necessary strength to push the pair below its nearest support formed by the 100-hour SMA and the monthly and weekly PPs at 1.1760, especially if no significant data releases are scheduled for today.
Advance above this mark is not expected during the following two days, as the Euro is starting to diminish its trading range within a two-week channel up.
In terms of support, it is likely that bears lack the necessary strength to push the pair below its nearest support formed by the 100-hour SMA and the monthly and weekly PPs at 1.1760, especially if no significant data releases are scheduled for today.
Comment:
EUR/USD showed high volatility on Tuesday. It was dominated by bulls during the first part of the day, but nevertheless failed to overcome the psychological 1.18 mark. As a result, it retraced from the breached two-week channel up and allowed bears to dominate the remainder of the session until the 200-hour SMA was reached at 1.1740.
Technical indicators are tended south today; however, given that this 1.1740 area is likewise restricted by the 55-period (4H) SMA, the Euro might lack the necessary bearish momentum to dash through this support during the first part of the day. This could send the pair higher within the following hours.
By and large, the Fed policy statement at 1800GMT is likely to introduce volatility; thus, today’s trading range should be wide, possibly 1.1700/1.1820.
EUR/USD showed high volatility on Tuesday. It was dominated by bulls during the first part of the day, but nevertheless failed to overcome the psychological 1.18 mark. As a result, it retraced from the breached two-week channel up and allowed bears to dominate the remainder of the session until the 200-hour SMA was reached at 1.1740.
Technical indicators are tended south today; however, given that this 1.1740 area is likewise restricted by the 55-period (4H) SMA, the Euro might lack the necessary bearish momentum to dash through this support during the first part of the day. This could send the pair higher within the following hours.
By and large, the Fed policy statement at 1800GMT is likely to introduce volatility; thus, today’s trading range should be wide, possibly 1.1700/1.1820.
Comment:
Wednesday’s trading session was beneficial for bulls, as the Euro managed to gain 65 pips against its American counterpart during the second part of the day.
This surge started when the pair failed to move below the 55-period (4H) and 200-hour SMAs at 1.1740. This level has likewise been a strong resistance/support level since May 21.
Along the way, the rate breached the upper boundary of a one-week descending triangle. This should result in further advance that is expected to occur if the 200-period (4H) SMA at 1.1813 is breached. The daily high in this scenario should be the weekly R1 at 1.1856.
In the meantime, the pair should be supported by the 55-, 100– and 200-hour SMAs and the monthly and weekly PPs in the 1.1755/1.1780 range.
Fundamentals are likely to introduce volatility today.
Wednesday’s trading session was beneficial for bulls, as the Euro managed to gain 65 pips against its American counterpart during the second part of the day.
This surge started when the pair failed to move below the 55-period (4H) and 200-hour SMAs at 1.1740. This level has likewise been a strong resistance/support level since May 21.
Along the way, the rate breached the upper boundary of a one-week descending triangle. This should result in further advance that is expected to occur if the 200-period (4H) SMA at 1.1813 is breached. The daily high in this scenario should be the weekly R1 at 1.1856.
In the meantime, the pair should be supported by the 55-, 100– and 200-hour SMAs and the monthly and weekly PPs in the 1.1755/1.1780 range.
Fundamentals are likely to introduce volatility today.
No significant changes were introduced to EUR/USD’s positioning on Monday, as it remained trading along the 55-hour SMA. The pair, however, provided the second confirmation of a three-day channel down (dashed lines).
The bearish momentum took the upper hand early today, thus pushing the rate past the prevailing two-week channel up and below the 55– and 100-hour SMAs.
The pair is currently stranded between these lines and the 200-hour SMA. The same moving averages constrain the rate on the four-hour chart, as well. Thus, it is likely that large gains are limited today.
It is expected that the Euro remains tended south, setting the lower channel boundary and the 55– and 100-period (4H) SMAs near 1.17 as the daily low. In the meantime, gains should not exceed 1.19.