EUR/USD: Lull Before The Storm
LiteForex Europe | Oct 21, 2014 06:54AM ET
During the last trading session European currency grew by over 40 points against the USD. Economists associate the rise with the lock in profit, which took place prior to the release of the US inflationary data, which will be released tomorrow (15:30 GMT+3).
Today’s economic calendar does not contain fundamental news, which can affect movement in the EUR/USD pair. The most feasible scenario for the nearest future is the continuation of the growth in the Euro. The EUR/USD pair has already reached the monthly highs at the level of 1.2840. Bollinger Band® are directed sideways, reflecting the lull in the market. MACD histogram is in the positive zone; its volumes are increasing, indicating that upward movement will continue. It seems that the “bulls” will make an attempt to break down the level of 1.2840. In case of breakout of the level of 1.2840, the pair can reach the resistance level of 1.2890. Downward trend can be formed after consolidation of the pair below the level of 1.2750, from which the “bears” will try to “drop” the pair to the level of 1.2730, and then down to 1.2705.
Support levels: 1.2785, 1.2750, 1.2730 and 1.2705.
Resistance levels: 1.2840, 1.2890 and 1.2930.
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