In anticipation of the speech by Janet Yellen, the head of the US Fed, the pair EUR/USD is traded at the high levels. Yesterday, the price reached the level of 1.1285 (Fibonacci 23.6% after the decline from the highs of 2014). However, generally the pair EUR/USD remains in the downtrend. Correction to the indicated level was sharp and short-lived.
Now, let’s look at the cross-pair EUR/GBP. On the daily chart the price has rebounded from the strong resistance level of 0.7820 (ЕМА200), which is crossed by Fibonacci retracement level 50% to the global decline in the pair EUR/GBP since August 2013.
If the price rebounds from this level and the pair EUR/GBP starts to decline, it can trigger the decline in Euro in the pair EUR/USD.
However, the pair EUR/USD can decline to support levels of 1.1125 (ЕМА200 on the daily chart) and 1.1030 (ЕМА144). Breakdown of these levels will indicate the resumption of the downtrend. On the 4-hour and daily charts the indicators OsMA and Stochastic are reversing towards the short positions.
Further dynamics will be determined by the outcome of the speech by Janet Yellen and by the decisions adopted at the meetings of ECB and US fed on 10 and 16 March respectively.
Support levels: 1.1125, 1.1030, 1.1000, 1.0890 and 1.0750.
Resistance levels: 1.1285, 1.1375 and 1.1450.
Sell Stop: 1.1245
Цели:1.1200, 1.1125, 1.1030, 1.1000, 1.0890, 1.0750
Buy Stop: 1.1320
Цели:1.1375, 1.1450, 1.1500