EUR is growing against USD. After the test of the local maximum in the end of January, the pair was corrected downwards but went up again due to the increase in demand on euro. In February, the pair entered a slighter upward channel. Despite the poor EU fundamental data release, trading moods are upwards.
On Friday the US strong Nonfarm Payroll, Factory Orders, and main indices data were published, and the pair has fallen by more than 100 points. It has reached the lower border of the current upward channel, and it is now forming a new upward wave, supported by Germany and EU positive Service PMI.
In the beginning of the week, the traders are focused on Germany Factory orders, Industrial Production and German Buba President Weidmann speech.
Support and resistance
In the short term, the growth to the upward border of the upward channel 1.2555 is expected. Then the pair can consolidate sideways within the narrow channel below the key resistance level of 1.2535. The pair can break it and renew its highs due to the significant decrease in demand on the US currency.
The alternative is the growth of demand on the oversold USD against positive US data releases, and a long-term downward correction within the long-term upward trend with the target at 1.2250.
On the daily chart technical indicators maintains the growth signal, MACD reflects the high volumes of long positions, Bollinger Bands are pointed upwards.
Resistance levels: 1.2500, 1.2535, 1.2550, 1.2585, 1.2630, 1.2700.
Support levels: 1.2420, 1.2400, 1.2330, 1.2290, 1.2250, 1.2210, 1.2175, 1.2150.
It is relevant to increase the volume of long positions at the current level with the target at 1.2550 and with the target at 1.2700 in the long term and stop loss at 1.2410.
Euro vs US Dollar
|Take Profit||1.2550, 1.2700|
|Support levels||1.2150, 1.2175, 1.2210, 1.2250, 1.2290, 1.2330, 1.2400, 1.2420, 1.2500, 1.2535, 1.2550, 1.2585, 1.2630, 1.2700|
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