EUR/USD starts new week at 1.1870
EUR/USD starts new week at 1.1870
On Friday, the pair fluctuated quite intensively amid contradicting reports that the US Senate is ready to vote for tax reform, while General Flynn pledged guilty to lying to the FBI. Despite that an anticipated resistance at 1.1936 and the 200-hour SMA at 1.1860 managed to retain the rate. As a result, it is still fluctuating in a junior ascending channel and is about to clash with the upper boundary of a dominant descending channel. As for today, the pair started new trading week in a limbo between the 100- and 200-hour SMAs.
Although the upper side is additionally filled with the 55-hour SMA at 1.1884, the 61.8% Fibonacci retracement level at 1.1887 and the weekly PP at 1.1890, the Euro is still projected to pave the path to the north. However, this assumption holds true unless traders interpreted Friday’s plunge as a rebound from larger pattern.
On Friday, the pair fluctuated quite intensively amid contradicting reports that the US Senate is ready to vote for tax reform, while General Flynn pledged guilty to lying to the FBI. Despite that an anticipated resistance at 1.1936 and the 200-hour SMA at 1.1860 managed to retain the rate. As a result, it is still fluctuating in a junior ascending channel and is about to clash with the upper boundary of a dominant descending channel. As for today, the pair started new trading week in a limbo between the 100- and 200-hour SMAs.
Although the upper side is additionally filled with the 55-hour SMA at 1.1884, the 61.8% Fibonacci retracement level at 1.1887 and the weekly PP at 1.1890, the Euro is still projected to pave the path to the north. However, this assumption holds true unless traders interpreted Friday’s plunge as a rebound from larger pattern.
Despite positive sentiment related to successful vote on tax bill by the US Senate, the pair both started and ended the day near the 1.1870 mark. The reason for that is related to combined resistance formed by the 55-, 100- and 200-hour SMAs and support provided by the lower trend-line of a one-month long ascending channel.
Unless the rate receives an impulse from some fundamental event, such as the Non-Manufacturing PMI data release, it is likely to spend another day in a similar horizontal movement. Apart from that, there is a need to take into account two additional junior descending channels. It is highly possible that their framework taken together with the above technical indicators will create a bearish pressure strong enough to dissolute the ascending channel eventually.