EUR/USD: Optimism of the US Fed has strengthened Dollar

October 31, 2013

Current trend 

Following the announcement of the outcome of FOMC meeting, the pair EUR/USD has slightly declined. The USD was supported by optimistic forecast of the US economic growth. Fed members said about the rise of economic activity and possibility of phasing out of quantitative easing program later this year.

Support and resistance

The price has overcome important support level of 1.3730 and is moving now towards the level of 1.3700, trying to break down average line of “Bollinger Bands” indicator. Next obstacle for the “bears” will be the line 1.3660. Resistance levels are 1.3730, 1.3770 and 1.3832.

On the four-hour chart technical indicators confirm probability of downward movement. Bollinger bands are directed downward. Intersection of MACD and the zero line gives a sell signal.

Trading tips 

It is recommended to open short positions from the level of 1.3700 with the primary target at the level of 1.3655.

Andrey Cherkas

Analyst of LiteForex Group of Companies

Publication source
LiteForex information  LiteForex reviews

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