EUR/USD

EUR/USD: EUR is strengthening, fforecast, forex rate, March 22

Current trend

The euro rose rapidly against the US dollar on Wednesday, updating local highs of February 4. The reason for the emergence of a confident "bullish" dynamics was the weakening of the US currency amid the publication of the minutes of the Fed meeting. As expected, the regulator left the interest rate unchanged at 2.5%. At the same time, which turned out to be the most important, the Fed clearly stated that it is not going to make two planned rate hikes this year. In 2020, as before, the regulator expects only a one-time rate increase. The euro could not strengthen more confidently due to the uncertainty around Brexit, as there is still no consensus regarding the postponement of the UK exit from the EU.

Support and resistance

On the D1 chart, Bollinger Bands are reversing upwards. The price range is expanding, however, it fails to catch the development of "bullish" trend at the moment. MACD indicator is growing preserving a stable buy signal (the histogram is above the signal line). Stochastic, approaching its maximum levels, tends to reverse horizontally, signaling the growing risks of overbought euro in the ultra-short term.

One should keep existing long positions until clarification. It's worthwhile to postpone opening new positions now.

Resistance levels: 1.1447, 1.1471, 1.1500.

Support levels: 1.1418, 1.1400, 1.1370, 1.1343.

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Trading tips

To open long positions, one can rely on the breakout of 1.1447. Take-profit – 1.1500. Stop loss – 1.1418-1.1410. Implementation period: 1-2 days.

The development of correctional dynamics of the instrument at the end of the week is a more likely scenario. Short positions may be opened after the breakdown of 1.1418-1.1400. Take profit – 1.1343 or 1.1313. Stop loss – 1.1440-1.1450. Implementation period: 2-3 days.

 

Scenario

Timeframe Intraday
Recommendation SELL STOP
Entry Point 1.1415, 1.1395
Take Profit 1.1343, 1.1313
Stop Loss 1.1440, 1.1450
Key Levels 1.1343, 1.1370, 1.1400, 1.1418, 1.1447, 1.1471, 1.1500

 

Alternative scenario

 

Recommendation BUY STOP
Entry Point 1.1455
Take Profit 1.1500
Stop Loss 1.1418, 1.1410
Key Levels 1.1343, 1.1370, 1.1400, 1.1418, 1.1447, 1.1471, 1.1500

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