EUR/USD: Dollar Remains Under Pressure
Mayzus | Mar 18, 2016 11:06AM ET
Yesterday the pair continued growing amid weakness in the USD that was pressured by unexpectedly pessimistic commentaries from the Fed last Wednesday. The regulator lowered its own forecasts of the pace of further monetary policy tightening in the US and mentioned existing risks to the economy of the excessive strengthening in the dollar. In addition, the pair was supported by strong data from the eurozone where the Consumer Price Index for February grew by 0.2% and exceeded forecasts of economists.
Bollinger Bands® on the daily chart is moving up but the price remains outside of the upper border of the range. MACD is growing and giving a strong buy signal. Stochastic is in the overbought zone and growing as well.
The indicators suggest a possibility of a downward correction.
- Support levels: 1.1300 (local low), 1.1246, 1.1200, 1.1160, 1.1100, 1.1067 (16 March low), 1.1000 (psychologically important level), 1.0966.
- Resistance levels: 1.1342 (local high), 1.1376 (11 February high), 1.1400 (middle of October 2015 high), 1.1459, 1.1500.
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