EUR/USD: the direction stays the same

Current trend

At the beginning of March, EUR significantly grew against USD due to the decrease in demand and change of trading moods.

This trading week the pair was trading below the key resistance levels within the sideways trend. Then European currency tried to break the strong resistance levels of 1.2430 and 1.2445 again. The fail supported USD and weakened EUR, and as a result, the pair has lost more than 120 points in a few hours. The instrument is now trading around the strong support level of 1.2290 before the publication of key releases: the Unemployment level and Nonfarm Payrolls data.

Support and resistance

The current wide downward range can be seen as a consolidation, after which the pair will determine the vector of the movement in the middle term. After the breakout of the current high, the pair can grow to the new ones, otherwise, the instrument will change the trend and form a downward trend with the targets at 1.2000, 1.1950.

On the 4-hour chart, technical indicators reflect the change of the direction, MACD long positions’ volumes are rapidly decreasing, Bollinger Bands are pointed horizontally.

Resistance levels: 1.2360, 1.2420, 1.2430, 1.2445, 1.2500, 1.2520, 1.2535, 1.2555.

Support levels: 1.2280, 1.2250, 1.2225, 1.2175, 1.2150, 1.2100.

Trading tips

It is relevant to increase the volume of long positions at the current level and open pending long positions from the levels of 1.2175, 1.2150 with the targets at 1.2500, 1.2555.

Euro vs US Dollar

Buy Sell Spread
1.23263 1.23241 22

Scenario

Timeframe Weekly
Recommendations BUY
Entry Point 1.2295
Take Profit 1.2500, 1.2555
Stop Loss 1.2230
Support levels 1.2100, 1.2150, 1.2175, 1.2225, 1.2250, 1.2280, 1.2360, 1.2420, 1.2430, 1.2445, 1.2500, 1.2520, 1.2535, 1.2555

Alternative scenario

Recommendations BUY LIMIT
Entry Point 1.2175, 1.2150
Take Profit 1.2500, 1.2555
Stop Loss 1.2065
Support levels 1.2100, 1.2150, 1.2175, 1.2225, 1.2250, 1.2280, 1.2360, 1.2420, 1.2430, 1.2445, 1.2500, 1.2520, 1.2535, 1.2555

EUR/USD: the direction stays the same

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