EUR/USD: the dynamics maintains

Current trend

EUR has significantly strengthened against USD recently.

The upward momentum has strengthened after the pair renewed the 3-year maximum at the level of 1.2100. The instrument continued to grow and reached the strongest resistance level of 1.2290, which is the upper border of the long-term upward channel. Yesterday in the evening, the pair reversed into correction, which continued today in the morning. However, the instrument could not break the strong support level and is now trading above 1.2210.

Despite strong EU and Germany inflation data, EUR against USD is under pressure due to the changing of the trading moods. The investors are closing long profitable positions and opening short ones on the peak and at the upper border of the trend. Tomorrow and in the second half of the trading week there is a lack of EU key releases, so the traders should pay the attention to US consumer sentiment index, employment market, and industrial production.

Support and resistance

In the end of the week, the dollar can strengthen, and the pair will fall to 1.2150, and to the level of 1.2030, which is the lower border of the upward trend, in the middle term. However, the pair can stay within the long upward trend, and after the deep correction, the upward wave can begin its formation.

The alternative is the consolidation within the narrow sideways channel without significant downward correction and the further growth of the pair.

On the higher charts, the technical indicators reflect the maintenance of the upward trend, MACD reflects the high volume of long positions, and Bollinger Bands are pointed upwards.

Resistance levels: 1.2290, 1.2330, 1.2360, 1.2400.

Support levels: 1.2210, 1.2175, 1.2150, 1.2100, 1.2075, 1.2030, 1.2000, 1.1980, 1.1950.

Trading tips

It is relevant to increase the volume of long positions from the current level and open pending long positions at the strong support levels of 1.2210, 1.2150, 1.2100, 1.2030 with the targets at 1.2330, 1.2360 and stop loss at 1.2000.

Euro vs US Dollar

Buy Sell Spread
1.2234 1.22324 16

Scenario

Timeframe Weekly
Recommendations BUY
Entry Point 1.2217
Take Profit 1.2330, 1.2360
Stop Loss 1.2160
Support levels 1.1950, 1.1980, 1.2000, 1.2030, 1.2075, 1.2100, 1.2150, 1.2175, 1.2210, 1.2290, 1.2330, 1.2360, 1.2400

Alternative scenario

Recommendations BUY LIMIT
Entry Point 1.2210, 1.2150, 1.2100, 1.2030
Take Profit 1.2330, 1.2360
Stop Loss 1.2000
Support levels 1.1950, 1.1980, 1.2000, 1.2030, 1.2075, 1.2100, 1.2150, 1.2175, 1.2210, 1.2290, 1.2330, 1.2360, 1.2400

EUR/USD: the dynamics maintains

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