EUR/USD 1.3640 - 20 March

EUR/USD Open 1.3660 High 1.3732 Low 1.3421 Close 1.3667

As expected no change was made in the interest rate and interest rate policy by FOMC on Wednesday, and they remained 0.00-0.25%. The announced news is that the Federal Reserve intends to buy 300 billion long term treasury instruments in the next 6 months. This caused massive Dollar sales. Actions of the Federal Reserve show that fears of deflation are large and will take all possible measures to tackle the problem. The Euro made a serious move against the dollar of over 700 pips for the last 2 days. It is not very likely rising to continue because of the serious resistance levels already reached and the possibility of decrease. The price is very close to 52.8% of Fibonacci correction at 1.3736. Candles for the next days should be observed for signs of weakening movements. This would be descending signal in search of the double bottom around 1.2455. Immediate support level is 1.3430, followed by 1.3110. Short term resistance level is 1.3735, followed by 1.3850.

Technical resistance levels: 1.3735 1.3850 1.4025

Technical support levels: 1.3430 1.3110 1.2990

Trading range: 1.3630 - 1.3690

Trend: Upward

Buy at 1.3640 SL 1.3610 TP 1.3680

Yesterday we made +10 pips profit on EUR/USD from the following signal:

5:47 GMT Buy EUR/USD at 1.3455 SL 1.3429 TP 1.3505 exited at 6:25 GMT

Total yesterday +146, as shown at