Fundamental Analysis
The euro is still holding onto some gains against the dollar on Friday, after climbing nearly 1% yesterday. This happened after the ECB’s president gave no indication that they would cut bench mark interest rate or make any increase in their asset purchase plan. Mr Draghi, the European Central Bank’s president, was also fairly positive about the euro zone’s growth prospect, and he confirmed that the ECB perceive a more moderate recovery in the euro zone, because there are more signs that market confidence has increased in the 17 nation’s bloc.
Technical Analysis
The double bottom reversal pattern mentioned in our analysis yesterday has pushed the price upward and it is hesitating for a further gain as it is approaching near its resistance level mentioned below. The price action certainly hesitated yesterday, when it approached near its minor downward trend line shown in a green colour, before it finally broke this line.
The RSI is trading in line with the price action which means bias could still be towards the upside.
Important Level
Resistance Zone
1.3130-1.3166 (Minor)
1.3321-1.3292 (Major)
Support Zone
1.2913-1.2872
DISCLOSURE & DISCLAIMER: The Above Is For Informational Purposes Only And Not To Be Construed As Specific Trading Advice. Responsibility For Trade Decisions Is Solely With The Reader.
by Naeem Aslam
The euro is still holding onto some gains against the dollar on Friday, after climbing nearly 1% yesterday. This happened after the ECB’s president gave no indication that they would cut bench mark interest rate or make any increase in their asset purchase plan. Mr Draghi, the European Central Bank’s president, was also fairly positive about the euro zone’s growth prospect, and he confirmed that the ECB perceive a more moderate recovery in the euro zone, because there are more signs that market confidence has increased in the 17 nation’s bloc.
Technical Analysis
The double bottom reversal pattern mentioned in our analysis yesterday has pushed the price upward and it is hesitating for a further gain as it is approaching near its resistance level mentioned below. The price action certainly hesitated yesterday, when it approached near its minor downward trend line shown in a green colour, before it finally broke this line.
The RSI is trading in line with the price action which means bias could still be towards the upside.
Important Level
Resistance Zone
1.3130-1.3166 (Minor)
1.3321-1.3292 (Major)
Support Zone
1.2913-1.2872
DISCLOSURE & DISCLAIMER: The Above Is For Informational Purposes Only And Not To Be Construed As Specific Trading Advice. Responsibility For Trade Decisions Is Solely With The Reader.
by Naeem Aslam