EUR/USD falls to 1.1836 amid progress on tax reform
EUR/USD falls to 1.1836 amid progress on tax reform
In line with forecasts, an improvement in consumers’ sentiment dragged the pair to the weekly PP at 1.1864, while the subsequent news that two hesitating senators agreed to join other Republicans to support tax reform pushed the pair even further to the monthly R1 at 1.1826. As this barrier is located slightly above the bottom boundary of an ascending channel and is additionally supported by the 200-hour SMA, the pair is expected to make a fully-fledged rebound and start surging back to the 1.1910 and then 1.1960 levels.
However, a resistance posed by the weekly PP as well as concentration of the 55- and 100-hour SMAs near the 61.8% retracement level at 1.1890 suggests that the rate is likely to make one more turnaround especially if it matches with release of info on the US Prelim GDP.
In line with forecasts, an improvement in consumers’ sentiment dragged the pair to the weekly PP at 1.1864, while the subsequent news that two hesitating senators agreed to join other Republicans to support tax reform pushed the pair even further to the monthly R1 at 1.1826. As this barrier is located slightly above the bottom boundary of an ascending channel and is additionally supported by the 200-hour SMA, the pair is expected to make a fully-fledged rebound and start surging back to the 1.1910 and then 1.1960 levels.
However, a resistance posed by the weekly PP as well as concentration of the 55- and 100-hour SMAs near the 61.8% retracement level at 1.1890 suggests that the rate is likely to make one more turnaround especially if it matches with release of info on the US Prelim GDP.
Comment:
EUR/USD prepares to hit 1.1940
In line with expectations, in first half of previous trading session the pair slipped to the bottom and, after finding support at the 200-hour SMA that was located slightly above the lower trend-line of a junior ascending channel, resumed an active surge. By this morning, the currency rate has crossed practically all notable resistance levels. The only area left untested is located at the 1.1936 mark. Nevertheless, it is unlikely to stop the pair from reaching the upper boundary of a senior descending channel near 1.1940 by the end of the day.
But even in case bears take the lead, for instance, after release of better than expected information on the US ISM Manufacturing PMI, combined support level formed mainly by the 100-hour SMA but also by the 61.8% Fibonacci retracement level is expected to neutralize the plunge.
In line with expectations, in first half of previous trading session the pair slipped to the bottom and, after finding support at the 200-hour SMA that was located slightly above the lower trend-line of a junior ascending channel, resumed an active surge. By this morning, the currency rate has crossed practically all notable resistance levels. The only area left untested is located at the 1.1936 mark. Nevertheless, it is unlikely to stop the pair from reaching the upper boundary of a senior descending channel near 1.1940 by the end of the day.
But even in case bears take the lead, for instance, after release of better than expected information on the US ISM Manufacturing PMI, combined support level formed mainly by the 100-hour SMA but also by the 61.8% Fibonacci retracement level is expected to neutralize the plunge.
As it was forecasted yesterday, the resumption of surge towards the 1.1910 level was halted in resistance zone that contained both the weekly PP with the 55-hour SMA as well as the 61.8% Fibonacci retracement level and the 100-hour SMA. Nevertheless, the general scenario remains the same. In medium perspective the pair is projected to reach the upper boundary of a senior descending channel near the 1.1940 mark.
However, during this trading session the above technical indicators are likely to push the rate back to combined support formed by the 200-hour SMA and the bottom edge of a junior ascending channel. But this scenario might be altered due to release of estimate on Euro Zone’s inflation. Even though the event itself does not arouse much volatility but it might create a momentum for easier breakthrough to the top.