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The EUR/USD pair rallied in the short term trying to recover yesterday's losses. The price turned to the upside as the Dollar Index plunged. The currency pair is trading at 1.0607 at the time of writing. Technically, the rate rebounded but the fundamentals should drive it later.
As you already know, the ECB is expected to increase the Main Refinancing Rate from 3.00% to 3.50%. The ECB Press Conference and the Monetary Policy Statement could bring high volatility and sharp movements. In addition, the US Unemployment Claims could be reported at 205K in the last week versus 211K in the previous reporting period.
Technically, the EUR/USD pair found support on the 1.0535 historical level. It has registered only a false breakdown below this level and through the weekly S1 (1.0540) signaling that the downside movement ended.
Now, it has stabilized above the 50% Fibonacci line of the ascending pitchfork. It has found resistance at the weekly pivot point of 1.0620 and it could come back to test and retest the 50% line and the 1.0592 static support.
Staying above the 50% Fibonacci line and beyond 1.0592 and making a new bullish closure above the weekly pivot point of 1.0620 activates a potential further growth at least towards the median line (ml). This scenario is seen as a bullish signal.
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