The EURUSD trades in an undefined zone and the speech of Mario Draghi, President of the ECB, is scheduled for today at 11:00 GMT.
The market is still looking forward to the release of the US Consumer Price Index and FOMC Minutes reports. Recent ECB comments seem to have boosted the upward movement of the EURUSD. The EURUSD is trading around 1.2360, +0.71% comparing to last week which means that this pair has positively varied around 100 pips. Meanwhile, Ewald Nowotny, Governor of the National Bank of Austria, stated that "the European Central Bank will stop buying assets sometime this year." But when the London session was about to close, another ECB spokesman said: the visions are yours and do not represent the vision of the governing council".
Despite the volatility caused due to those statements, the market seems to have already recovered, keeping the bullish movement, while everyone is expecting the main events of today’s economic calendar. Precisely, the President of the ECB, Mario Draghi, will speak at 11:00 GMT. In the US, the Consumer Price Index and the FOMC minutes reports are scheduled to be released at 13:30 GMT and 18:00 GMT, respectively.
EURUSD Monthly Chart
In this monthly chart, it could be detected a downtrend trend line. Price seems to have retraced five times to this trend line and bounced off it. It could be inferred that it appears to be at an important level. If the price breaks this resistance, then we could expect the continuation of bullish momentum. On the contrary, the price will probably stall and continue backing down.
EURUSD Weekly Chart
In the weekly chart, it is possible to draw an upwards channel. Here, it could be noticed a minor trend going against a major trend with the price appearing at monthly resistance.
EURUSD Daily Chart
In this daily chart, the price seems to consolidate between the resistance level 1,21859 and the support level 1,25133. If the price breaks the level 1,26079, then we could expect that the bullish move will continue to the area of 1,28626. In case the price breaks the level 1,21204, on the other site, with bearish momentum, then it could be expected a target area of 1,18003.
EURUSD H4
For traders wishing to position themselves on the 4-hour graph so that to take advantage of possible news announcements then they could consider the following weekly resistance and support levels.
- Weekly Resistance 1: 1.2345
- Weekly Resistance 2: 1.2410
- Weekly Resistance 3: 1.2475
Pivot Point: 1.2280
- Weekly Support 1: 1.2215
- Weekly Support 2: 1.2150
- Weekly Support 3: 1.2085
Good luck with your trades!
About the author:
Carlos Santos da Silva is responsible for Sales at TeleTrade’s office in Portugal, as well as, the regular manager providing market analysis to our clients. Carlos has 10 years of experience in the sector, from Banking, Financial and Brokerage Institutions, both for the American and European market. Forex Market (Forex) is his main passion, focus and specialization. He likes sharing his experiences with all traders, from beginners, to more experienced ones.