EUR/USD moves towards 1.1795
New trading week the currency exchange rate started in a movement towards combined resistance level formed by the weekly PP and the slipping 100-hour SMA. Such recovery of the Euro was triggered by a rebound from support zone located between the 1.1730 and 1.1722 levels. In addition to that, depreciation of the buck signified a breakout from the falling wedge formation. In first half of this trading session the pair is expected to continue moving upwards until it reaches an area near the 1.1795 mark. The further surge is unlikely due to additional resistance posed by the monthly PP at 1.1806 and the upper boundary of a junior descending channel.
New trading week the currency exchange rate started in a movement towards combined resistance level formed by the weekly PP and the slipping 100-hour SMA. Such recovery of the Euro was triggered by a rebound from support zone located between the 1.1730 and 1.1722 levels. In addition to that, depreciation of the buck signified a breakout from the falling wedge formation. In first half of this trading session the pair is expected to continue moving upwards until it reaches an area near the 1.1795 mark. The further surge is unlikely due to additional resistance posed by the monthly PP at 1.1806 and the upper boundary of a junior descending channel.
Comment:
EUR/USD drops to 1.1730 amid PPI release
In accordance with expectations, until release of information on the US PPI the currency rate was slowly fluctuating near the 55- and 100-hour SMAs. But since the data was better than analysts’ expected the pair broke through the 38.2% Fibonacci retracement level and once again ended up in support zone located between the 1.1730 and 1.1722 marks.
Until release of an update on the American inflation the rate is expected to continue fluctuating near the upper boundary of a minor descending channel. In case of disappointing result, depreciation of the buck might elevate the pair up to the 1.1800 level. However, the rate is still expected to plunge to the area between the 23.6% retracement level at 1.1681 and the monthly S2 at 1.1652 due to alleged interest rate hike.
In accordance with expectations, until release of information on the US PPI the currency rate was slowly fluctuating near the 55- and 100-hour SMAs. But since the data was better than analysts’ expected the pair broke through the 38.2% Fibonacci retracement level and once again ended up in support zone located between the 1.1730 and 1.1722 marks.
Until release of an update on the American inflation the rate is expected to continue fluctuating near the upper boundary of a minor descending channel. In case of disappointing result, depreciation of the buck might elevate the pair up to the 1.1800 level. However, the rate is still expected to plunge to the area between the 23.6% retracement level at 1.1681 and the monthly S2 at 1.1652 due to alleged interest rate hike.
Yesterday’s trading session ended exactly as expected. Initially, the Euro was climbing against the Dollar. However, once the currency rate has reached combined resistance formed by the weekly and monthly PP at 1.1806 as well as the upper boundary of a junior descending channel, it was forced to retreat back to the 55-hour SMA. As all eyes are turned to the upcoming Fed meeting, the pair is not expected to make significant moves today as well.
In other words, it is likely to continue fluctuating between the above barrier from the top and the 38.2% Fibonacci retracement level located at 1.1760 from the bottom. A release of the American PPI data might push the rate a little bit lower. But even in that case it is expected to stay above the 1.1730 support zone.