EUR again dominates against the dollar.
After a significant correction from the local maximum of 1.2555, the euro dropped to the level of 1.2150, but, failing to consolidate below this level, the pair fought back and headed up. Since March 1, EUR has significantly strengthened. The main catalysts for growth were a decrease in demand for the dollar and a favorable fundamental background for the Eurozone.
Today, the upward momentum remained on the confirmation of the forecasts for the growth rates of the Eurozone for Q4 2017. At the end of this week, attention should be paid to the US labor market and trade balance. The fastest reaction of the pair may be to data on Nonfarm Payrolls and on unemployment in the US.
Support and resistance
In the short term, the upward trend remains: the pair can grow up to the level of 1.2500 or to the local maximum of February (1.2555). In the future, much will depend on the trading moods, which will be formed in view of fundamental releases, mainly from the United States. In the case of weak data on the change in the number of people employed in non-agricultural industries and the unemployment rate, the dollar will lose significantly in investor support. The main scenario is the formation of an upward wave with a target of 1.2555 and a high probability of testing new highs.
Technical indicators confirm the outlook: MACD shows a quick growth in the volume of long positions, Bollinger Bands are pointing up.
Support levels: 1.2430, 1.2360, 1.2330, 1.2290, 1.2280, 1.2225, 1.2175, 1.2150.
Resistance levels: 1.2500, 1.2520, 1.2535, 1.2555, 1.2585, 1.2630, 1.2700.
In this situation, long positions may be opened with targets at 1.2555, 1.2700 and stop-loss at 1.2330.
Euro vs US Dollar
|Take Profit||1.2555, 1.2700|
|Support levels||1.2150, 1.2175, 1.2225, 1.2280, 1.2290, 1.2330, 1.2360, 1.2430, 1.2500, 1.2520, 1.2535, 1.2555, 1.2585, 1.2630, 1.2700|
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