Last week Euro/Dollar moved in an ascending channel. The width of the channel is around 200 pips. There is consolidation on the forex market, which is a dynamic equilibrium in search of a trend catalyst. Global financial markets remain nervous and uncertain about future steps of economy stabilization and whether that will give the desired effect. This will lead to continued volatility on the currency market. Dollar index was in a consolidation for the last 4 days, which suggests lack of force in the movement, therefore yesterday Dollar lost positions against all currencies, which may continue today too. Technical indicators however are in the overbought zone on the 4 hour chart, indicating downwards pressure in favor of the Dollar.
Technical resistance levels: 1.2870 1.2985 1.3100
Technical support levels: 1.2625 1.2555 1.2465
Trading range: 1.2885 - 1.2950
Buy at 1.2896 SL 1.2866 TP 1.2936
Yesterday we made +50 pips profit on EUR/USD from the following signal:
5:48 GMT Sell EUR/USD at 1.2846 SL 1.2872 TP 1.2796 TP reached at 6:42 GMT
Today so far +159, yesterday +168, as shown at www.zifx.com/performance.php