EUR/USD failed for the second trading session this week to overpass 1.1285 (Friday's highs), with yesterday’s peek up to 1.1283, and today 1.1277. The pair is confined with Friday’s bullish candle shadow which holds further correction mood amid at 1.1220 (S2).
But overall, EUR/USD is still trading above its 15-EMA at 1.1177, which keeps bullish forces intact and withhold further potential attacks taking into consideration yesterday’s US negative data, pushing the greenback lower as the Index plunged today to 96.47 2017-fresh lows.
Fundamentally, Trump with his relentless effort favoring lower US dollar and last week’s rumors about ECB potentially removing QE program fueled EURO but rumors will be tested this Thursday As Draghi makes a statement after ECB min bid rates decision but market should be opened to all scenarios including a dovish one.
Technical Overview:
Trend: Bullish / Sideways
Resistance levels: R1 1.1285, R2 1.1302, R3 1.1326
Support levels: S1 1.1204, S2 1.1221, S3 1.1199
Comment: The market remains bullish despite EUR/USD current correction phase. Last week’s sharp rallies calls for larger bull waves seeing 1.1300+ as a potential. Any correction phase should hold within Friday’s range. Closing above 1.1200 keeps bullish forces in action. Dips should fight S2 level still boosted by super coming Thursday. On the other hand, continuous dipping U.S Index gives priority to EUR/USD to surge
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