EUR/USD: Profit Taking Seen Ahead Of European Central Bank Meeting
Yuri Papshev | Jul 20, 2017 10:43
After the strongest growth observed since last Friday, when disappointing data on inflation in the US were published, yesterday the EUR/USD was declining. Its decline was mainly due to profit taking in long positions on the eve of today's ECB meeting.
With the opening of today's trading day, the EUR/USD is trading in the range near the level of 1.1520. The further dynamics of the pair will directly depend on today's decision and comments of ECB President Mario Draghi.
Technical analysis in the current situation fades into the background, the positive dynamics of the currency pair remains. EUR/USD continues to trade in the uplink on the daily chart. In case of resumption of growth and breakdown of the local resistance level 1.1580, the nearest target will be resistance level 1.1600 (EMA200 on the weekly chart), and in case of its breakdown - resistance level 1.1785 (Fibonacci level 38.2% corrective growth from the minimum reached in February 2015 in the last wave of global decline of the pair from the level of 1.3900).
The reverse scenario involves a breakdown of the short-term support level 1.1470 (EMA200 on the 1-hour chart) and a further decline to support level 1.1282 (Fibonacci level of 23.6%). Deeper decline in the framework of positive dynamics is permissible to the level of 1.1000 (EMA200 on the daily chart), however, this is the least likely scenario.
Support levels: 1.1485, 1.1470, 1.1440, 1.1390, 1.1370, 1.1285, 1.1240, 1.1120, 1.1000
Resistance levels: 1.1580, 1.1600, 1.1785
Trading recommendations
Sell Stop 1.1480. Stop-Loss 1.1535. Take-Profit 1.1440, 1.1410, 1.1395, 1.1370, 1.1285, 1.1240, 1.1120
Buy Stop 1.1535. Stop-Loss 1.1450. Take-Profit 1.1580, 1.1600, 1.1785
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