Over the last week Euro/Dollar is in a consolidation and moves within the 1.2710 - 1.3040. The market continues to seek direction, despite the announcement of incentives for the U.S. economy from the new administration. Published data do not cause the expected positive effects on the stock markets, which affects the forex market. This condition will lead to significant movements of the currency market over the next 1-2 days due to this divergence. Short term support levels are 1.2735, followed by 1.2645. Immediate resistance levels are 1.2980, and then 1.3055. As a quotes compression increases, serious movements can be expected the next few days. On the 4 hour chart there is a formation of an ascending triangle with rising bottoms, and resistance around 1.3070. Probability of a break upwards is high, which corresponds with the high price of gold. An important step towards the realization of this scenario would overcome the SMA, which present a role of resistance. Technical indicators do not provide clarity on the potential movement yet. Boundaries of the Bollinger channel begin to shrink, showing a decline in volatility and preparation for leaving the state of consolidation.
Technical resistance levels: 1.2980 1. 3055 1.3185
Technical support levels: 1.2735 1.2645 1.2615
Trading range: 1.2940 - 1.2880
Sell at 1.2930 SL 1.2960 TP 1.2890
Yesterday we made +20 pips profit on EUR/USD from the following signal:
5:48 GMT Sell EUR/USD at 1.2913 SL 1.2939 TP 1.2863 exited at 6:02 GMT
Total yesterday +119, as shown at www.zifx.com/performance.php