Last week, the EUR/USD pair corrected down to new local lows from its six-week highs. The US currency was supported by Fed officials’ statements which has left a more positive impression than the results of the meeting did. Moreover, further tightening of US seems likelier amid recent macroeconomic publications.
In particular, strong data on US GDP for the fourth quarter was released on Friday. The indicator was revised up to 1.4% from 1.0%.
Support and resistance
on the is trying to turn horizontally while the price range has outlined the borders of a possible sideways channel. is still keeping its downward trend. in the oversold zone and trying to turn up suggesting an upward correction is possible in the short term.
The indicators recommend waiting for clearer trading signals.
Support levels: 1.1160, 1.1100, 1.1067 (near 16 March low), 1.1000, 1.0966, 1.0939.
Resistance levels: 1.1200, 1.1246, 1.1300, 1.1342 (17 March high), 1.1376, 1.1400, 1.1459.
Long positions can be opened if the price turns up near the level of 1.1160 (with appropriate indicators signals) with the target at 1.1300 and stop-loss at 1.1100. Validity – 2-3 days.
Short positions can be opened is the price breaks down the levels of 1.1150, 1.1100 with the target at 1.1000 and stop-loss at 1.1200. Validity – 2-4 days.