Analysts expect a bearish sentiment to return soon for two reasons. The US corporations pleased investors with the fourth quarter positive report. Secondly, we cannot ignore the oil market dynamics – the Brent and WTI rose by 5% the other day that is possible only in case of risky assets high demand.
All the traders' attention was focused on the Fed decision regarding the rate. As it was expected the regulator left the rate unchanged. Still the market is full with rumors that the rate hike will take place the first spring month.
The first support resides at 1.0800 and then it goes at 1.0730. The first resistance comes in at 1.0925, the next one is at 1.1050.
There is a weak sell signal. The price is in the Ichimoku Cloud. The Kijun-sen is showing a horizontal movement, the Tenkan-sen is heading upwards crossing the Tenkan-sen. The pair shall advance the north until the price is below the Cloud.
The MACD indicator is in a negative territory.
We expect a flat. The further pair movement depends on what the support or the resistance line the pair breaks. The move below 1.0730 is a bearish signal. The level of 1.0925 break may send the pair up to 1.1050.