Morning outlook - EUR/USD trades near 1.1760
Due to anticipation of the ECB meeting as well as referendum on extension of autonomy in Lombardy and Veneto regions the common European currency slipped against the Dollar to the 1.7520 mark. As the northern side is protected by a combination of the 100-hour SMA and the weekly PP plus the 55- and 200-hour SMAs, the pair is expected to continue to move to the bottom towards the bottom boundary of an alleged three-week long ascending channel that is located a little bit above the updated weekly PP at 1.1722. The general strengthening of the Greenback is also supported by the average market sentiment, which is 59% bearish. As there are no data releases planned for today, the pair should not make any unexpected and sharp moves.
Due to anticipation of the ECB meeting as well as referendum on extension of autonomy in Lombardy and Veneto regions the common European currency slipped against the Dollar to the 1.7520 mark. As the northern side is protected by a combination of the 100-hour SMA and the weekly PP plus the 55- and 200-hour SMAs, the pair is expected to continue to move to the bottom towards the bottom boundary of an alleged three-week long ascending channel that is located a little bit above the updated weekly PP at 1.1722. The general strengthening of the Greenback is also supported by the average market sentiment, which is 59% bearish. As there are no data releases planned for today, the pair should not make any unexpected and sharp moves.
Comment:
EUR/USD fails to climb above 100-hour SMA
Previous trading session was marked by attempt to elevate the pair above the 1.1780 level amid concerns over President Trump’s tax reform. However, the surge was successfully neutralized by the 100-hour SMA that was additionally backed up by the weekly PP and the 200-hour SMA. As a result, the pair slipped back to the 55-hour SMA. Until release of data on the US Core Durable Goods Orders the pair is likely to fluctuate near the 1.1760 mark.
Depending on result, the exchange rate might either jump and clash with the above combined resistance or fall and hit the bottom trend-line of junior ascending channel. Even if this pattern does not sustain, a deep plunge will be still unlikely as an area between 1.1725 and 1.1722 represents notable support level.
Previous trading session was marked by attempt to elevate the pair above the 1.1780 level amid concerns over President Trump’s tax reform. However, the surge was successfully neutralized by the 100-hour SMA that was additionally backed up by the weekly PP and the 200-hour SMA. As a result, the pair slipped back to the 55-hour SMA. Until release of data on the US Core Durable Goods Orders the pair is likely to fluctuate near the 1.1760 mark.
Depending on result, the exchange rate might either jump and clash with the above combined resistance or fall and hit the bottom trend-line of junior ascending channel. Even if this pattern does not sustain, a deep plunge will be still unlikely as an area between 1.1725 and 1.1722 represents notable support level.
First of all the pair has hit the previously speculated lower trend line of a medium term ascending channel pattern. The rate rebounded against the support after shortly touching it above the 1.1720 mark.
Secondly a rebound followed, which was already stopped on Tuesday morning by the resistance of the 55-hour simple moving average. The SMA is just the first one in a cluster of resistance levels.
Third and last the pair is set to be squeezed in by the medium support and the SMAs.