EURUSD has strengthened since 15th March, breaking the significant resistance level at 1.0700, as a result of the sharp fall of the dollar caused by profit-taking pressure post the Fed interest rate announcement.
We saw the release of the German PPI for February (YoY) yesterday, beating expectations and the previous figure.
EUR/USD is still trading above the 10 and the 20 SMAs, indicating the trend remains upward.
However, the current price is nearing the next significant long term major resistance level at 1.0800, where there is heavier pressure. Be aware that the bullish momentum is likely to be restrained here.
The daily Stochastic Oscillator is above 80, suggesting a retracement.
The resistance level is at 1.0800, followed by 1.0830 and 1.0850.
The support line is at 1.0760, followed by 1.0740 and 1.0725.
There are 9 Fed presidents and FOMC members scheduled to have a speech this week. This week is relatively light on economic data releases. Therefore, the Fed presidents’ prospective hawkish / dovish comments are likely to become the major driver of USD moves.