EUR/USD – have had a long walk, so what?

The money on the table 

All the commentaries of ECB about yesterday’s session seemed optimistic for investor, but they weren’t so. Now we are following the ascending trend abc, which is corrective movement in relation to previous bear impulse. In case of growth renewal a maximal value is expected at the level of 1.3350. In general a fall to the following boundaries is expected:

The level of 1.3114, which coincides with 38,2% Fibonacci level, further 1.2975 equals 23,6% based on Fibonacci.

New positive impulse is possible to the boundaries 1.3342, coincides with 61,8% based on Fibonacci and 1.3400.

Currency pair EUR\USD is challenging the crowd

Yesterday the currency pair demonstrated insolent behavior, and despite an unconvincing statement made by Mario Dragi – the head of ECB, grew by 200 points, and the volatility was 232 points.

Fundamental analysis:

Yesterday it became clear that the data about the number of original application for unemployment benefit in the US dropped by 11 000, on the whole it was 346000, however it is still a lot, compared to the analytics’ prediction about the quantity of 345 000.

Everybody expected Dragi’s speech. As it was expected rates of interest remained unchanged at the level of 0.50 %.

Technical picture is the following:

Currency pair is breaking several levels of resistance and reaching the maximum of 1.3304. Today euro is trading at the lower border of price channel, at the level of 1.3091. Today the USA will publish a range of important statistic data. Let us see how the euro will behave. Will it be capable of keeping the positions?

The first border for the descending movement is the level of 1.32227, further 1.3199 and 1.3165. However we are still watching the newly formed bull trends, which are supported by 30 and 50-daily gliding average. The growth of the currency is seen from 1.3271, to 1.3304 and 1.3331, maximum can be expected 1.3371.

The indicator lines of Bollinger Bands are open and directed upwards, which supports the above mentioned information. The centerline which is a reliable support, stopped at 1.3221.

Oscillator MACD raised above zero

Today we recommend you to open positions from the following levels: 1.3271, 1.3304, 1.3331 and support: 1.3227, 1.3199, 1.3165.

Moving Average 50 days at the level of 1.3141,Moving Average 30 days – 1.3182.