On Wednesday, the EUR/USD pair was trading flat after a relatively strong growth at the beginning of the week.
This dynamics was due to statements made by the Chair of the Federal Reserve Janet Yellen yesterday. She pointed out that the current economic situation in the US still allows the Fed to continue raising interest rates. At the same time, the Regulator remains very cautious, and, generally, Janet Yellen’s testimony reinforced the belief that interest rates will remain unchanged at the forthcoming monetary policy meeting, due in March.
Support and resistance
Bollinger bands indicator on the daily chart is directed up while the price range is widening actively. At the same time, the indicator does not contradict the possibility of a downward correction towards 1.1100. MACD is growing and keeping a buy signal. Stochastic is in the overbought zone and directed horizontally.
The indicators recommend waiting for clearer trading signals.
Support levels: 1.1246, 1.1200, 1.1160 (10 February low), 1.1100 (near 8 February low), 1.1059, 1.1000 (psychological level).
Resistance levels: 1.1300, 1.1337 (9 February high), 1.1400, 1.1459 (level 15 October 2015), 1.1500.
Long positions can be opened after the breakout of the level of 1.1315 (with appropriate indicators signals) with targets at 1.1380, 1.1450 and stop-loss at 1.1280. Validity – 2-3 days.
Short positions can be opened after the price reverses and breaks down the level of 1.1240 with targets at 1.1160, 1.1100 and stop-loss at 1.1270. Validity – 2-3 days.