EUR/USD: Dollar Strengthens Its Positions In The Foreign Exchange Market
Yuri Papshev | Jun 21, 2017 09:34
Investors are increasingly optimistic about the results of last week's Fed meeting. The likelihood of another increase in interest rates by the Fed this year rose yesterday to about 51% (against 47% on Monday and 41% last week). Rising rates usually support the dollar, making it more attractive to investors.
The WSJ US dollar index, which displays the value of the US currency against a basket of other currencies, rose yesterday by another 0.3%, to 88.99, the highest level since May 30. The dollar received support from the comments of the President of the Fed-New York, William Dudley, who expressed confidence in the economy and the growth of inflation in the US.
Despite the fact that the euro receives support from the cross with the pound after the Bank of England Governor Mark Carney said yesterday that it is still too early to raise interest rates, paired with the dollar, the euro remains under pressure.
Nevertheless, with the opening of today, the pair EUR/USD is trading in a narrow range near the level 1.1130, in the middle of the range limited by short-term levels - resistance 1.1155 (144-period moving average) and support 1.1115 (200-period moving average on the 4-hour chart ).
In case of breakdown of the support level 1.1115, the pair will go deep into the uplink on the daily chart, the lower limit of which lies near the key support level 1.0915 (200-period and 144-period moving averages on the daily chart).
Technical indicators speak in favour of this scenario, which on the 1-hour, 4-hour, daily charts went to the side of sellers. On the weekly chart, the indicators also unfold to short positions.
The dollar strengthens its position in the foreign exchange market, while in the EUR/USD negative dynamics persists. Only after the return of the EUR/USD above the short-term resistance level 1.1180 (200-period moving average on the 1-hour chart) can we return to consideration of long positions.
Support levels: 1.1115, 1.1100, 1.1080, 1.1000, 1.0950, 1.0915
Resistance levels: 1.1155, 1.1190, 1.1230, 1.1280, 1.1340, 1.1600
Trading recommendations
Sell in the market. Stop-Loss 1.1210. Take-Profit 1.1115, 1.1080, 1.1000, 1.0950, 1.0915
Buy Stop 1.1210. Stop-Loss 1.1130. Take-Profit 1.1230, 1.1280, 1.1340, 1.1600
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