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

October 27, 2016
Daily Technical Outlook for October 27, 2016
The Euro bounced during yesterday after reaching a major support located at 1.0850 in the weekly chart. However, the current recovery can be short-lived as long as prices continue to trade below 1.1040peak, which represents the post-ECB high...
October 27, 2016
Brexit Barometer
The Brexit vote back in June taught markets never to take anything for granted and the same holds true for the upcoming US Presidential election. A poll lead for Trump in Florida yesterday, combined with some further revelations in the daily mud-slinging...
October 26, 2016
Sterling reversal
What we saw in sterling yesterday was instructive of the dilemma that may face other central bankers before long. Carney played down expectations of a further easing in policy before the end of the year, as was strongly suggested in August when they eased policy in the wake of the Brexit referendum...

Orbex Rating
OctaFX Rating
Vantage FX Rating
FBS Rating
Fort Financial Services Rating
FXTM Rating

OptionRally Rating
Beeoptions Rating
Anyoption Rating
TopOption Rating
OptionBit Rating
TropicalTrade Rating