|Day's Range||1.238 - 1.242|
|52 Week Range||1.0497 - 1.2558|
Based on the early price action, the direction of the EUR/USD today is likely to be determined by trader reaction to the short-term 50% level at 1.2380.
You’re watching this week’s first Daily Trading Signals. Here’s how the interbank sentiment compares with the technical models at 8 AM GMT.
Seems like another correction have finally arrived for the American Dollar. Usually, when the calendar is empty like this, attention shifts towards the politics or we are completely ignoring the news and just go with the flow (trend, technical analysis). Technically, EURUSD draws a false breakout pattern (grey) above the resistance on 1.252 (orange).
The pair pulled down significantly during the Friday’s session reaching towards the 1.24 level which offered a bit of support. Overall, the market is in general uptrend and pullback like this offers a good buying opportunity. If the market further breaks down, the 1.23 level and 1.21 level is going to offer maximum support. All the pullbacks are a technical move based on the recent highs and buyers will get attracted to take this market forward. …Read MoreGBP/USD
German wholesale price inflation rose more than expected after a sharp decline in December. German wholesale price inflation rose to 2.0% year over year in January, from 1.8% year over year in the previous month. The rebound after the sharp decline in December, backs our view that HICP will also move higher again in coming months and add to the arguments of the growing number of ECB council members opting for an end to net asset purchases.
The EUR/USD pair has rally during the week, breaking above the 1.25 level to make a fresh, new high. However, we have pulled back significantly so it makes sense that we may struggle a bit in the near term. I think we are trying to build up the necessary momentum to finally break out, perhaps reaching towards the 1.32 level based upon my longer-term charts and the recent breakout of a bullish flag.
Based on the current price action, the next downside target is the steep uptrending Gann angle at 1.2405. Watch for a technical bounce.
The pair has been bullish through the Thursday’s session as it reached the 1.25 level which is a psychologically important level. The British Pound rallied significantly during the Thursday’s session as it broke above the 1.40 level which was significantly resistive. Yesterday’s move in the market is a very positive development and should continue to rally for next few sessions reaching towards the 1.43 level.
The EUR/USD pair has rallied again on Thursday, reaching towards the 1.25 level, an area that has been very important on the longer-term. Ultimately, this is a market that I think will break that level, but we may need to pull back to build up the necessary momentum to finally get above there and continue going higher.
Based on the early price action, the strength of the EUR/USD today will be determined by trader reaction to the steep uptrending Gann angle at 1.2525.
The market was very noisy during the trading session on Wednesday, as it was for all pairs involving US dollar. The pair initially went down to test the support at 1.23 level but then shot higher at once reaching towards the 1.24 level. The pair is now aiming to reach towards its next target of 1.25 level which is psychologically important level.
The EUR/USD pair has been very volatile during trading on Wednesday, initially falling towards the 1.23 level, and then shooting like a rocket towards the 1.24 handle after the CPI numbers came out of the United States.
Based on the early price action, the direction of the EUR/USD is likely to be determined by trader reaction to the short-term 50% level at 1.2364.
Euro/Dollar’s short and long term indicators are mostly neutral, but the mid term shows mixed results. The close to 25% long interbank is bullish. The Cable has 6 neutrals in both the short and long terms.
The pair is now expected to go higher towards the 1.24 level and then towards 1.25 level eventually from here which is a large, round, psychologically significant level.The pair has massive support around the 1.21 level underneath which is unlikely to be broken. The British Pound initially rallied higher during the Tuesday’s session but got enough resistance higher and pulled back. The 1.40 level above is going to be important and also a resistance barrier.
The EUR/USD pair has gone higher during the trading session on Tuesday, breaking above the 1.23 handle again. There is a certain amount of bullish pressure underneath, and I think that were going to go looking towards that level rather soon, and I think that we will continue to see the US dollar soften in general.
Based on the early price action, the nearest objective is a potential resistance cluster at 1.2362 to 1.2367. Watch for a technical bounce on the first test of this area.
Having reversed from nearly two-month old ascending trend-line support, the EURUSD seems heading towards the 1.2360 and the 1.2400 nearby resistances, which if broken could further escalate the pair’s recovery in direction to the 1.2430 and then to the 1.2475 numbers. Alike EURUSD, the GBPUSD also witnessed a pullback and is rising in direction to the 1.4000 round-figure but it’s further upside may be confined by the 1.4080-85 resistance-zone. If the quote fails to sustain its latest up-moves, the 1.3830 and the 1.3750 might act as immediate rests for the pair ahead of reigniting the importance of 1.3685-80 support-confluence, including 50-day SMA and three-month old upward slanting trend-line.
"I think (the U.S. dollar) is getting to extreme levels, I think the interest rates will save it," says Giles Keating, managing director at Werthstein Institute.