EUR/USD ahead of a significant structural area. The MACD could turn in.
Yesterday’s FOMC protocol did not add excitement to the EURUSD. The impact on the currency pair was limited, as since the January meeting we have had a lot of FOMC members commenting on the current outlook. Perhaps today’s fundamentals are helping the market to leap forward.
The EURUSD has been floundering at a high level for weeks without showing any clear direction. Currently, the market is reaching an essential key region in the range of 1.135-1.140. With yesterday’s candle, the market tried to dive into this region. However, the sales pressure was stronger.
If the bulls manage to break through this area with momentum, a price potential up to the peak of 1.150 to 1.156 could be possible. On the way, there is only one structural level in the 1,145 range that the market must overcome.
If the bulls then continue to dominate the market, further potential could even open up into the 1.175 range.
If the range of 1.135 to 1.114 proves to be too strong a barrier for bulls, then the range of 1.130 to 1.125 must provide support to the market. Otherwise, there is a risk that the bears will gain the upper hand and the market could be passed through to 1.114.
On the technical side, the MACD could cross its trigger line from bottom to top, which would be a positive sign.
Fundamental support could be provided to the EURUSD by 7 a.m. GMT from the EU Harmonized Index of Consumer Prices (HICP), from the Markit Manufacturing PMI at 8:30 a.m. GMT and at 9 a.m GMT from the Markit PMI composite.
EUR/USD Daily Chart | Source: ActivTrader
Written by Daniel Schuetz, External Analyst
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