Daily Morning Briefing
Friday, March 17, 2017 8:19 AM GMT
FOMC offered the initial boost on EURUSD, so USD weakness, but Nowotny confirmed the positive momentum on the pair. The Austrian ECB council member gave an exclusive interview on Handelsblatt and he implied the possibility of loosing ECB’s monetary in a different way than FED. Traders understood that ECB might increase the interest rates sooner than expected.
We have noted a major resistance zone (1.08-1.087) as well a major descending trendline (yellow). There is a clear confluence of the above as noted on blue area. In the event of bearish rejection (bearish candlesticks), bears would get a great opportunity of selling it. On the other hand, bulls need a valid breakout and a valid retest in order for the pair to activate higher targets (1.12+).
The price is following the rising channel rather nicely. It is currently testing the upper side as well we see there is no MACD negative divergence.
Going on lower timeframe, it’s a good opportunity to review the price structure while it’s heading upwards and creating higher highs/lows. It is moving inside channels within a bigger channel (see H4 above). We have noted two blue support zones. The number 2 is placed according the symmetry of the number 1. It could offer a solid support to the bulls in case there is a downside retracement.