EUR/USD was indecisive yesterday. Commercial bias remains bullish in nearest term for testing 1.1470. Support for the day remains 1.1285. A clear break and daily close below this level could become a threat to the bullish scenario re-testing the lower line of the bullish channel, but I still prefer a bullish scenario at this stage.
Yesterday EUR/USD was trading in a narrow range for a second day in a row and the single currency remained almost unchanged at a level of 1.1355. The daily high was reached at 1.1379and the low at 1.1338. The current consolidation might test the psychological level at 1.1400.
Euro/dollar had another indecisive movement yesterday. Short-term expectations remain bullish for testing 1.1470. Immediate support is seen at 1.1285, as break and daily close below it could become a threat to the bullish scenario re-testing the lower line of the bullish channel, but still it is preferable scenario up at this stage.
The dollar hit a new four-week low against a basket of major currencies on Wednesday. The dollar index, which tracks the US currency against a basket of six major rivals, fell 0.05 percent to 93.779 after falling up to 93.695 - the lowest level since May 11. Euro rose by 0.06 percent to $ 1.1363.
On Wednesday session EUR/USD was trading in a tight 20 pips wide range. The pair added nearly 40 pips to a closing price of 1.1393. The intraday high was hit at 1.1410 which is a three-week high and the daily low was marked at 1.1354. Currently the pair remains limited by the psychological level at 1.1400, but the outlook is bulish. Possible break will target EUR/USD to 1.1465.
The euro was down against the US Dollar on Friday. EUR/USD is at 1.1250, shedding 0.58%. The support is now located at the level of 1.1246, the low of Friday's trading, and resistance is likely to make the level of 1.1416 - the maximum of Thursday.
The dollar ended the week with a sharp rise against other major currencies, despite the Federal Reserve this summer lowered expectations of growth rates. On Friday, the USD index, showing the US dollar against a basket of major currencies, rose 0.65%. The index finished the week higher by 0.56%. On Friday, the EUR/USD pair finished trading at 1.1251, jumped 0.57% on the day, but losses for the week amounted to 1.02%.
Giving a forecast for the EUR/USD pair for the next month, the majority of experts (80%) insist on lowering the pair at least to the level of 1.1100. As a result, after ECB President Mario Draghi's speach, the pair really started to move south and graduated from a week in the middle between the support levels 1.1283 and 1.1200, designated on the basis of graphical data analysis.
The sentiment on the dollar remained fragile as markets revised expectations for the timing of the next rate hike the central bank of the United States after on Friday data showed the smallest increase in the number of employees since September 2010.
In addition, on Monday, Federal Reserve Chairman Janet Yellen said the US central bank does not intend to raise interest rates, while keeping the uncertain economic outlook in the United States. Yellen also expects, that the US recovery will continue, but did not specify the possible timing of the next rate hike.
The euro marked a decline against the US dollar for a second day in a row on Friday. EUR/USD lost 62 pips to a closing price of 1.1252. The pair broke the first resistance at 1.1286. Next bears target is the first support at 1.1100. On the upside, the resistance is located at 1.1286.
EUR/USD tried to make upward movement last week, topped at 1.1414 but failed to keep the momentum, fell down and closed lower at 1.1252. Trade signals are low for testing the lower line of the bullish channel localized in the region of 1.1130. Immediate resistance is at 1.1285. A clear break below that area should lead the price to neutral trading zone testing 1.1320.
The single currency was trading elevated against the US Dollar on Monday. The session started at 1.1250, the pair broke the resistance at 1.1286 and the session closed at 1.1290. Next bulls target is the resistance located ta 1.1450. Support is now located at 1.1286.
On Tuesday, the single currency recorded a significant loss against the US dollar. The session started at 1.1290 and closed 86 pips lower. After steady downtrend the pair broke through the first support at 1.1286. Next support is located at 1.1100 and the resitance now is located at 1.1286.
On Wednesday the single currency was trading elevated against the US dollar, following the highly awaited FOMC decision. The pair opened at 1.1206 and closed 52 pips higher. If the uptrend continues, the pair will move to the first resistance located at 1.1286.
The single currency recorded a slight decrease against the US dollar on Thursday. The session started at 1.1258 and ended 34 pips lower. On downwards first support is located at 1.1100. Resistance is located at 1.1286.
On Friday, the dollar fell against the euro, but remained stable at 22-month lows against the yen, as the pessimistic reports in the US, as well as decisions of the Federal Reserve System and the Bank of Japan to leave monetary policy unchanged is still putting pressure on the US currency.
