USD continued to strengthen due to positive US macro-economic statistics

November 17, 2014

Current trend

Last week the USD continued to strengthen due to positive US macro-economic statistics; however the pair EUR/USD was not able to consolidate below the level of 1.2400. The data on the US retail sales and consumer confidence index have exceeded the forecast; while the increasing number of applications for unemployment benefits has slightly spoiled statistics. As a result, the pair finished the last week reaching the level 1.2520.

At today’s opening session the pair at first continued to rise, but then fell to support level of 1.2490. In the afternoon, Mario Draghi, a chairman of the ECB, will give a speech, which can shed light on the future policy of the regulator. On Wednesday, final minutes of the US Fed meeting will become known. On Thursday, US consumer price index will be released.

Support and resistance

Technical indicators show that the pair has broken through above the level of 1.2500, which could have become a signal of trend reversal; however the price at once underwent downward correction. If the pair does not consolidate above the level of 23.6 Fibonacci, it will again test the bottom limit of the channel at the level of 1.2400.

Support levels: 1.2485, 1.2460, 1.2440, 1.2420 and 1.2395. The main target of the “bears” is to go below the level of 1.2485. Resistance levels:1.2500, 1.2525, 1.2550 and 12580.

Trading tips

It makes sense to open buy positions from the level of 1.2500 with the target of 1.2580. Sell positions can be opened below the level of 1.2485. it is also advisable to place limit buy orders at the level of 1.2395.

Ilya Lashenko

 LiteForex Investments Limited Analyst

Publication source
LiteForex information  LiteForex reviews

September 30, 2016
The OPEC greases the wheels for oil
The global equities rally led by the gains in the energy sector after the OPEC members cut a deal in Algiers, despite the market scepticism and repeated statements that the Oil officials in Iran and Saudi Arabia are not able to find a middle ground in the current conditions...
September 30, 2016
Opec deal no certainty
In a huge surprise to the market, members of the Opec cartel agreed to cut production by as much as 700,000 barrels a day with some predicting that this may be the start of a new upward trend for oil...
September 30, 2016
Brent futures consolidated their gains
Brent rose in the European session after a surprised OPEC decision to cut oil output. Moreover, a draw in U.S. crude stocks gave an additional support for oil prices...

FBS Rating
FXTM Rating
HYCM Rating
Larson&Holz IT Ltd Rating
HotForex Rating
FxPro Rating

Grand Option Rating
IQ Option Rating
OptionFair Rating
Binary Brokerz Rating
Banc De Binary Rating
Beeoptions Rating