26 April, AtoZForex, Vilnius – Last week the sharp rise and the same rapid decline of the euro has happened because of comments from Mario Dragi. The ECB president admitted the possibility of monetary stimulus at an early date. But according to his speech everything will depend on inflation level and situation in global economy. Does this influence EURUSD Bulls? Find out in our analysis below
How Mario Dragi’s speech influences EURUSD bulls?
From our H1 chart we can see that today EURUSD bulls are limited to 1.1300 level but still on the offensive mode. We have a considerable support at 1.1270 level while the immediate resistance is at 1.1300.
Based on the current price action development the pair is expected to rise within its bullish trajectory towards 1.1331 level before falling further down to the level of 1.1150 primarily.
- The pair is trading above the 50 and 200 moving averages on H1 time frame
- Both of our Moving Averages are flat with preferences on bullish side at the time of this analysis
- On H1 time frame RSI supports bullish trend however there is a bearish divergence on RSI on daily time frame as the daily RSI is right on 50 neutral level
Based on the above given chart and the price action development, my current view stands with the bullsih preferences until the level of 1.1331 level is achieved. Once this level is achieved bulls would be expected to lose their momentum loosing ground to the EURUSD bears who then would be pushing the pair towards 1.1150 level respectively.
- Resistance Levels: 1.1300, 1.1331, 1.1400
- Current price: 1.1286
- Support levels: 1.1270, 1.1200, 1.150
Pending EURUSD entry order
EURUSD SHORT (SELL Limit) @ 1.1331, SL@ 1.1370, TP1@ 1.1300, TP2@ 1.1150