Tuesday, 27 March 2018

EUR / USD correction after yesterday's rally

Posted by FortFS at 17:44 Labels: trading signals

Yesterday, USD dollar showed a decline across a broad spectrum of the market. On this background EUR / USD closed Monday's trading with significant growth. Fundamentally, the statement of Bundesbank head Weidmann that the ECB could raise rates in mid-2019, supported the single European currency.

ECB head Mario Draghi authority expires at the end of October next year, and the most likely candidate for the post of the head of the ECB is exactly the hawkish Weidman. Weidman's tenure as head of the Bundesbank ends in April 2019, so he will have enough time to prepare for the presidency of the ECB.

Technically, yesterday the pair broke through resistance of sellers at 1.2410 and finished trading on Monday above the important resistance level 1.2445 - this is not a bad bid to continue growing. To confirm the further positive trend, it is necessary, as a minimum, to complete today's trading above $ 1.2370.

Looking at the daily timeframe, the most likely scenario is the continuation of the Euro gain against USD dollar, however, buying at current prices looks rather risky. The main support level is now located at levels of $ 1.2340.