Today we would like to direct your attention to one of the most popular pairs out there, the EUR/USD. While 2017 began with a strong downward trend and investors even began talking of parity between the euro and the dollar, we recently saw a head and shoulders pattern develop at the 1.0500 level, which subsequently allowed the EUR/USD to begin a bullish rise. Today we need to focus on the resistance levels at 1.1270 and 1.1285. If the latter is overcome, we could see a further bullish gain to 1.1400, but if not, likely the pair would retreat a little bit. The nearby support levels for the pair are located at 1.1160 and 1.1149.
The pair is under the influence of events from both Europe and the United States. On the Old Continent we had an announcement from the European Central Bank last week which was generally positive about growth in the EU. On the other hand, there is much turmoil in the United States where President Trump’s administration is under increasingly heavy criticism, especially after the recent scandals surrounding the Paris Agreement and the testimony of the fired FBI director Comey. So, how can we act today with respect to the EUR/USD? If the area around 1.1280 is overcome, then the bulls will prevail over the bears and we could see the pair climb to 1.1400. We can place sell positions for the supply zone locate at 1.1400-1.1520, with a stop-loss at 1.1550 and T/P positions at 1.1100 and 1.1020. As of the moment of this article’s publication the EUR/USD is trading around 1.1208. The technical indicators are not unanimous, but most of them favor a buy action.
