Marshall Gittler
Trading Analysis
EUR/USD
EUR/USD surged after the Fed’s decision to maintain its bond-buying program at $85bn and crushed three resistance levels in a row. During the European morning the pair has settled slightly above the 1.3517 (S1) support level, where a re-boost by the longs should drive the actions towards February’s highs at 1.3706 (R2). The alternative scenario suggests that since the rate moved far away from the uptrend line, a possible correction towards it might occur.
Support is found at the 1.3517 (S1) level, followed by 1.3448 (S2) and 1.3400 (S3)
Resistance levels are the level of 1.3580 (R1), followed by 1.3706 (R2) and 1.3846 (R3). The latter two found from the daily chart.
EUR/JPY
EUR/JPY moved higher during the overnight session, breaking above the 132.63 level (yesterday’s resistance). Currently the pair lies between the aforementioned level and the resistance of 133.34 (R1). If buying pressure continues pushing the price higher, I expect the bulls to challenge the 133.34 (R1) level, where a clear upward penetration should trigger extensions towards the 133.74 (R2) and 134.23 (R3) levels respectively. Moreover, the rate is trading into the upward sloping channel, above both the 20- and 200-period moving averages, enhancing the probabilities for a further upward movement.
Support levels are at 132.63 (S1), followed by 131.70 (S2) and 130.96 (S3).
Resistance is identified at 133.34 (R1), followed by 133.74 (R2) and 134.23 (R3). The latter two are found from the daily chart.
EUR/GBP
EUR/GBP fell back and after testing once more the 0.8355 (S1) support level, recovered. Currently the pair is heading towards the 0.8423 (R1) level where a clear upward break might be the first signal of a newborn upside correction. The break would have to be accompanied by the entrance of MACD into its bullish territory, in order to increase the odds for the beginning of the correcting phase.
Support levels are identified at 0.8355 (S1), 0.8323 (S2) and 0.8260 (S3) respectively. The last two are found from the daily chart.
Resistance is found at the levels of 0.8423 (R1), 0.8453 (R2) and 0.8503 (R3).
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