The EUR/USD is the most traded currency pair in the Forex market, that is why it is so important for analyst to be up to date on the latest movements of the pair for a couple of reasons.
First, the US Dollar is a major world currency in the foreign exchange market and a major reserve currency. Secondly, the Euro is the second most important reserve currency and it is also the currency of the second largest economy by region in the world, which is the European Union. This is what makes this pair so important, according to the Binary Options Broker Optionova.
The EUR/USD has been in an uptrend for quite some time now, but the trend may be changing. The U.S. Dollar will strengthen versus most currencies and this will be felt by all citizens of the world from Belarus to Israel from Uzbekistan and Kazakhstan to Argentina and other emerging markets, said the experts at the Optionova along with the analytical service at the Masterforex-V World Academy.
The lack of fundamental data out of the Euro Zone and upbeat news from the United States is affecting the exchange rate of the EURUSD. The official statistics out of the U.S. published on the 16th of January, showed investors in the whole world that in the U.S. the economy appeared to be improving, as explained the analysts of the Optionova to the Masterforex-V World Academy’s staff. The number of initial jobless claims in the U.S. decreased to 326 thousand while the experts’ forecasts were 330 thousand. At the same time the consumer price index (CPI) rose 0.3%, because of rising energy prices, according to the experts of Optionova. This had a positive impact on the USD versus the Euro, the Australian Dollar, and other major currencies. Initially, the EUR/USD fell to the psychological round number level of 1.3600.
Traders explain the medium-term forecasts for the EUR/USD pair
The analysts of the Optionova explained that the key level for the pair is the 1.3699 or the round number level of the 1.3700. The MF benchmark is situated at the peak of wave B in the four hour chart. From this benchmark down there is a consistent creation of wave C. The temporary sloping channel, which protects the down movement, is the channel with the 1.3893 and the 1.3699 levels.
Price is between two temporary sloping channels.
The protective channel for the uptrend at the D2 level goes through the 1.3294 and 1.3548 levels.
To calculate a retracement, a corrective crosstab is used with the 1.3294 and 1.3893 levels.
Below we have the possible targets in case of prices continuing in a downtrend.
1.3548 = which is a Fractal-zigzag retracement.
1.3523 = 62 percent
1.3435 = 76 percent
1.3365 = 88 percent
The other option is a possible breakdown of the temporary sloping channel of the 1.3893 and 1.3699 levels and the formation of the Fractal-zigzag retracement to the 1.3700 level.
For calculation of purposes, the H8 level could be used as a correction wave crosstab with the borders at the 1.3893 and the 1.3548.
Bullish targets for the EUR/USD after the breakout of the MF 1.3649 pivot.
1.3721 = 50 percent
1.3761 = 62 percent
1.3812 = 76 percent
1.3852 = 88 percent
1.3893 = FZT D2 up
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One of the main tools to add to the analysis of the EUR/USD is the Dollar Index. The Dollar Index shows us the strength of the greenback versus a basket of currencies and if this index is showing general strength in the Dollar, then there should be higher implications for a bearish move on the EUR/USD.
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The traders of the Binary Options Broker Optionova, which by the way has been rated as one of the top binary option brokers by the Masterforex-V World Academy, noticed that lately, the Dollar index has been in a sustained uptrend. This obviously has a negative impact on the EUR/USD. The Academy holds different educational events to help you understand better how technical analysis works and the different interpretations that a trader can give to certain indicators.