Since the opening of the trading session today, all financial markets are undergoing correction, with the exception of the decline in the Japanese index Nikkei Stock Average by 4.8% at the Asian session and the fall in USD/JPY.
Yesterday, the pair EUR/USD exceeded Fibonacci retracement level by 100 points in the wave of decline since the lows of 2014. Today, the pair is declining amid closing of the short positions at the end of the trading day.
On the 4-hour chart the indicators OsMA and Stochastic show sell signals. On the daily chart the indicators also start to reverse towards the short positions. If it happens in anticipation of expansion of the quantitative easing program the meeting of ECB on 10 March, the decline in the pair EUR/USD can accelerate with the approach of this date.
In this case, the pair will go to support level of 1.1180 (ЕМА50 and bottom line of the ascending channel on the 4—hour chart) and 1.1125 (ЕМА200 on the daily chart). Breakdown of the level of 1.1030 (ЕМА144 on the daily chart) and consolidation of the price below 1.1000 can bring the pair EUR/USD back to the downtrend up to the levels of 1.0525 and 1.0485, the lows of 2015.
Support levels: 1.1180, 1.1125, 1.1030, 1.1000, 1.0890 and 1.0750.
Resistance levels: 1.1285, 1.1375, 1.1450.
Sell Stop 1.1260.
Targets 1.1180, 1.1125, 1.1030, 1.1000, 1.0890
Buy Stop 1.1320. Stop-Loss 1.1275. Targets 1.1375, 1.1450, 1.1500