Looking at the cross pair on the chart, let’s analyze how the euro is behaving against the USD. The cross made a double top at 131.67. It is parallel resistance which the pair was unable to breach yesterday. The intraday trend is turning to bearish. Resistance seems at 131.00. We recommend fresh buying above 131.00 with a target at 131.60. An hourly candle closes below 130.50, so we can conclude the near-term trend is capped. Intraweek support is found at 129.60. Positional selling will be triggered below 129.60 with targets at 129.30 and 128.75. The cross has been expanding its rising hourly wedge. A daily close above 131.70 can trigger a new upswing towards 131.85 and 133.20.
Buying ONLY above 131.00.
Better than expected data from the eurozone enabled the euro to push above 1.10. It may be the initial sign that the eurozone economy is gaining momentum. Germany stood high among other eurozone countries providing the optimistic outlook for the euro area’s economy. The Consumer Price Index was unchanged in February 2015. It is a 12-month rate of 0.0%, down from 0.3% in January. Inflation is the main concern in the global economy.
We recommended buying above 0.7305 on Monday. Today, the pair made a high at 0.7371. Intraday support seems at 0.7328. The pair has been facing strong resistance at 50Dsma and 200msma or 0.7375. If the price closes above 0.7375, bulls can challenge 0.7400, 0.7430, 0.7450, and 0.7550. Intraweek support is seen at 0.7300 and 0.7260. The cross gave an upside breakout from an inverse pattern aiming for 250/280 pips.
Key level to watch on the resistance side:
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