The euro paused its falling
steak at the yesterday’s session against USD. The euro is trading below 12-year
lows against USD. Today, traders eye German ZEW economic sentiment, ZEW economic
sentiment, the final CPI, the core CPI, and employment change. It’s a busy day ahead of
economic data. German ZEW economic sentiment rose 4 consecutive months. We expect
the same will repeat in March. The euro fate will be decided on Wednesday. We expect the
Federal Reserve to hike interest rates by 0.25% in June or September. The euro
is the most effecting currency due to the divergence policy of the Central
Bank. This divergence proves more downside room to this pair.
Technical view: the
pair gained 90 pips at the yesterday session. The price managed to
close successfully above hourly moving averages in the h1 chart. Intraday resistance is seen at 1.0620 and 1.0685. Support is likely to be found at 1.0560 and 1.0490. We recommend safe
buying above 1.0685. We have been recommending to trade with a target at 0.9000
for the last three weeks. Parallel support is seen at 1.0335. The euro is
trading higher against the US dollar ahead of today’s series of data. In case
the price closes below 1.0495, bears can challenge 1.0335 and 1.0310 levels in the near term. Weekly resistance is seen at 1.0700. We recommend intraday selling
below 1.0490 with targets at 1.0460, 1.0425, 1.0380, 1.0350, and 1.0335.
The Bank of Japan has just released monetary policy meeting minutes. The BOJ kept stimulus unchanged. The
Bank is going to purchase Japanese government bonds (JGBs), so their amount will increase at an annual pace of about 80 trillion yen. Regard to the
outlook, the economy of Japan is expected to continue its moderate recovery trend.
The year-on-year rate of increase in the CPI is likely to be about 0 percent
for the time being, due to the effects of a decline in energy prices.
The pair erases most of
its Friday’s losses. The cross broke 200Wema, 200Msma, and 200Mema as well.
These factors represent more bearish views. In the previous week, the pair fell
and closed below 200Wema. Parallel support was found at 125.00 and 122.20. In
the h4 chart, we can observe distribution around the level of 129.00. We
recommend buying above 129.10 with targets at 129.45 and 129.90 initially, and can extend towards 130.80 later. Intraday resistance is seen at 129.05. Intraday
support is likely to be found at 127.50. For intraday, we recommend selling
below 127.50 with targets at 126.60, 126.00, 125.60, and 125.20. Until the
price closes below 130.15, a monthly bearish view remains in play. We can
expect intraday strong momentum above 129.10.
Trade: Buying ONLY above
The material has been provided by InstaForex Company – www.instaforex.com