The Euro (EUR) extended its winning streak against the US Dollar (USD) on Monday, increasing the price of EUR/USD to more than 1.0600 following some key economic news release. The technical bias remains bearish because of a lower high in the recent upside rally.
As of this writing, the pair is being traded around 1.0604. A hurdle can be noted near 1.0670, the trendline resistance area ahead of 1.0819, the 50% fib level and then 1.0937, the upper trendline resistance as marked with red color in the given below chart.
On the downside, a support may be seen near 1.0514, the trendline support area as demonstrated in the given above daily chart with brown color. A break and daily closing below the 1.0514 trendline support shall incite renewed selling interest, validating a move towards the 1.0400 support zone which is a psychological number. The technical bias shall remain bearish as long as the 1.0819 resistance zone is intact.
Fed Chair Janet Yellen dropped a strong hint Friday that an interest rate hike is on the way later this month. While leaving just enough wiggle room in case conditions should change, the central bank leader said economic improvements of late will be a big part of the discussion at the March 14-15 Federal Open Market Committee meeting. “We currently judge that it will be appropriate to gradually increase the federal funds rate if the economic data continue to come in about as we expect,” Yellen said at a speech in Chicago, according to prepared remarks.
Considering the overall technical and fundamental outlook, buying the pair above the trendline resistance area appears to be a good strategy.
Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about making your money go further with FXOpen.
* FXOpen International, Innovative Broker of 2022, according to the IAFT
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.