The euro has moved marginally higher against the US dollar. Yellen suggests
the first rate hike may not happen before the second half of the year. The pair
bounced again from the support base. The eurozone approves Greece’s proposal. Greece submitted a list of reforms including budget
management, tax system revision, fight against corruption, pension system revision, and improvement of Greece’s public sector. Finally, Greece managed to make a sound deal. The deal gives way to the four-month bailout extension.
Today, traders are keeping an eye on US new home sales, Yellen’s testimony, and ECB president
Draghi speech. In March, the ECB will start its 1.14 trillion euro bond-buying
Technically, there is no improvement in the pair. Technically, the pair
looks very weak. The prices have a strong support base between 1.1270 and
1.1260. Trading is framed between 1.1450 and 1.1260. In case the pair closes
below 1.1260, the new lower target is found at 1.0996. The intraweek support is
set between 1.1280 and 1.1260. The panic will be triggered below 1.1260 with
the targets at 1.1220 and 1.1190. Until a h4 candle closes above 1.1450, use
every rise to sell. The intraday resistance is set at 1.1360 and 1.1370. We can
expect strong momentum, in case the pair closes above 1.1535, but the chances
are remote. Intraday support is set at 1.1330. We recommend selling below
1.1330 with the targets at 1.1330, 1.1290, and 1.1270.
Yellen suggests the first rate hike may not happen before the second
half of the year. US dollar is still trading higher against most major currencies. The
cable slipped 0.30% at yesterday’s session. The US consumer confidence index
declined in February after increasing in January. The Index now stands at 96.4, down
from 103.8 in January. According to Lynn
Franco, Director of Economic Indicators at the Conference Board, “After a large
gain in January, consumer confidence retreated in February, but still remains
at pre-recession levels (September 2007, Index, 99.5). Consumers’ assessment of
current conditions remained positive, but short-term expectations declined.”
Today, traders are focused on BOE Governor Carney speech, Yellen speech, and US new home
sales data. Ahead of the testimonies, the cable muted at the early Asian session.
The cable has been facing strong resistance at 1.5480 and the 61.8 fib
level. The weekly resistance is at 1.5535 20Wsma. The weekly support is seen
between 1.5310 and 1.5260. Bulls can challenge 1.5565, if the price breaches
above 1.5490. In case a h4 candle closes above 1.5480, again bulls can
challenge towards the new weekly high. The intraday support is found between
1.5440 and 1.5400. The panic will be triggered below 1.5400 with downside
targets at 1.5280 and 1.5200. We recommend selling below 1.5400 with the
targets at 1.5340, 1.5310, and 1.5280. The prices are consolidating in a tight
range between 1.5440 and 1.5475. Bulls can strike towards 1.5535, 1.5550, and
1.5564, in case the level 1.5480 is taken off.
Buying above 1.5480.
The material has been provided by InstaForex Company – www.instaforex.com