Barclays forex strategists revealed that they prefer to sell EUR/USD in it's attempts to growth, which will probably be limited by resistance in the $ 1.1060.
The dollar remained almost unchanged against the other major currencies on Wednesday, even after disappointing US economic data and concerns over declining oil prices continued to support the yen and Swiss franc. EUR/USD ended slightly lower at 1.0889.
The single currency recorded a modest decline for second consecutive day against the US dollar. After a volatile session, the euro lost 15 pips. The price managed to break through the first support at 1.0854, but immediately after the ECB meeting the pair bounced back. If bearish sentiment continue, EUR / USD will break first support at 1.0854 for a second time.
EUR/USD was indecisive yesterday. Price attempted to push lower, formed bottom of 1.0771, but then rose again and closed at 1.0874. The outlook remains neutral for now. Resistance for the day is seen at 1.0885 (hourly EMA 200). A clear break above this level could lead to upward pressure re-testing 1.0969. Immediate support is around 1.0800 - 1.0776, whose breach could trigger bearish pressure testing 1.0700. On the upside, a clear break and daily/weekly close above 1.0969 could trigger further bullish pressure testing 1.1060 and the trend line resistance next week. The longer, however, the price remains below the trend line resistance, the bearish scenario should remains intact.
The euro recorded a losing session against the dollar on Friday. The single currency ended the week at lower levels, bringing the pair close to the support at 1.0769. If the negative momentum continues, the key level will be overcome and the new goal of currencies will be the second support at 1.0707. Session on Friday started at a price of 1.0872 as the bear trend was leading from the start and dominated throughout. Bottom of the day was hit at 1.0789 and the finish line was crossed only 6 pips higher.
The single currency registered an increase against the dollar on Monday. The euro break two-day losing streak and marked gains. So break of support at 1.0769 was postponed and short-term expectations remain in favor of the euro. In this case, the pair is likely to make a test of resistance at 1.0917. Monday session started at a price of 1.0790, as a bullish trend was leading all the time. Tip of the day was reached at 1.0856, and session closed with 8 pips below.
The single currency marked a volatile session against the dollar on Tuesday. Finally session ended in favor of the euro. If bullish sentiment intensify, the resistance at 1.0917 will be soon overcome. Tuesday session started at a price of 1.0848 and closed 21 pips higher. Tip of the day was reached at 1.0873, and the bottom was hit 55 pips below.
Euro recorded a third consecutive winning session against the dollar on Wednesday. The single currency justified the positive expectations and the couple made a test of resistance at 1.0917. The break of the key level has been delayed, but if bullish sentiment continue in the future, it will be overcome. Wednesday session started at a price of 1.0869 as trading was very volatile. Ultimately currencies reached a peak for the day at 1.0915 end session closed with 24 pips below.
Intraday support is 1.0860, whose breach could lead price to neutral trading zone testing 1.0800 but important support remains at 1.0700. On the upside, a clear break above 1.0969 could trigger further bullish pressure testing 1.1060 and the trend line resistance. As long as price remains below the trendline, the bearish scenario remains valid.
The single currency recorded a strong increase against the dollar on Thursday. The euro registered a fourth consecutive winning session and as a result the resistance at 1.0917 was broken. If bullish sentiment continue, the pair may test the second key level at 1.1003. The session on Thursday opened at a price of 1.0891 and closed with 47 pips higher. Prevailing trend was bullish, as the peak of the day was reached at 1.0967.
The single currency continued its winning series against the dollar on Thursday after oil prices rose sharply during the last days of speculation to reduce production, and thanks to the weak US economic data.
On Friday session the single currency broke a four-day winning streak and erased most of weekly gains. The Euro lost 107 pips to a closing price of 1.0832. Trading passed within the final values 1.0947 and 1.0810. However, for the week EUR/USD managed to rise by nearly 40 pips. Technically the pair continues to move in a range, as break of levels at 1.0995 or 1.0790 will suggest prevailing attitudes.
The single currency added value against the dollar on Monday but remained in familiar territory. The euro rose by 55 pips to a closing price of 1.0887, although earlier in the day Mario Draghi reminded that it’s possible additional monetary stimulus by the ECB to be performed in March. Daily extremes EUR/USD reached 1.0911 respectively and 1.0814. Technical outlook for the pair remains neutral as it continues to consolidate.
On yesterday’s session the euro continued to increase against the dollar for a second day and added 31 pips to a closing price of 1.0918. Extreme values for the session were reached respectively at 1.0939 and 1.0884. In view of the movement of the pair in range, the outlook remains neutral in the short term.
The single currency recorded considerable profits on Wednesday session and thus managed to overcome its recent upwards range. The euro added nearly 200 pips to a closing price of 1.1102. The daily extreme values were reached respectively at 1.1137 over three-month high and 1.0903. The index of relative strength highlights the dominance of bulls as immediate goal appears to be 1.1105.
