At the closing session last week the USD significantly dropped against Euro; the pair has broken down October highs of 1.3834, however failed to consolidate above this level and rolled back to the lower boundary of the ascending channel. Today the USD may slightly strengthen amid growing number of pending home sales. The pair continues to trade in the ascending channel and has chances to rise to the level of 1.3834, where there is the upper line of “Bollinger bands”. The signal line and MACD is preparing to enter the zone of histogram, indicating that “bullish” sentiment in the market will persist.
Support and resistance
Support for the pair is provided at the level of 1.3698; lower limit of the channel and the middle line of “Bollinger bands” are also located near this level. The nearest resistance level is at the local highs of 1.3809.
It is recommended to open long positions with the target of 1.3834 and stop-loss at 1.3698.
Analyst of LiteForex Group of CompaniesPublication source