Review and dynamics
Since the beginning of today’s trading day, the USD has been growing in the currency market and in the pair EUR/USD.
The rise in the USD is caused by the positive US macro-economic statistics, released yesterday and in anticipation of the release of the minutes of FOMC meeting scheduled for 20:00 (GMT+2).
On the daily chart the pair EUR/USD has broken out important support levels of 1.1300 (ЕМА50 and the low line of the ascending channel and psychologically important level) and 1.1285 (Fibonacci 23.6% to the last wave of decline from the highs of 2014).
On the daily, weekly and 4-hour charts the indicators OsMA and Stochastic give signals for short positions.
The pair continues to decline to support levels of 1.1230 (ЕМА50 on the weekly chart) and 1.1180 (ЕМА200, ЕМА144 on the daily chart). Breakout of the latter level will trigger further decline to support levels of 1.0870 and 1.0750.
As an alternative scenario the pair may rise and consolidate above the level of 1.1335 (ЕМА200 on 4-hour chart). In this case and with support from the indicators, the pair may resume growth in the ascending channel on the daily chart with the upper limit at the level of 1.1700. After breakout of the resistance level of 1.1485 (highs of October 2015), the pair may continue to rise up to 1.1615, 1.1700, 1.1785 (Fibonacci 38.2%) and 1.1900 (ЕМА144 on the weekly chart).
Support levels: 1.1230, 1.1180 and 1.1100
Resistance levels: 1.1285, 1.1300, 1.1335, 1.1400, 1.1485, 1.1535, 1.1615 and 1.1700
Sell on the market. Stop-Loss: 1.1290. Targets: 1.1230, 1.1200 and 1.1180.
Buy Stop: 1.1310. Stop-Loss: 1.1280. Targets: 1.1335, 1.1400, 1.1485 and 1.1500.
Indicators suggest to open short positions