EUR/USD (one-hour chart as of January 28, 2014) bounced off the one-hour EMA 200 following weak US durable goods orders, which contracted by 4.3%, coming in short of expectations of a 1.8% gain. Durable goods often involve large investments that are sensitive to the US economic situation. Theoretically, a low reading is bearish for the US dollar, while a high reading is bullish for the dollar.
Current price is still under pressure below a short-term downtrend line connecting the January 24 high and the January 27 high. As shown on the one-hour chart, the pair is trading in a narrowing range with the lower border connecting the January 24 low and today’s low. Investors are waiting for the Fed interest rate and QE decisions tomorrow, before taking any major action.
Support levels below:
1st support: one-hour EMA 200
2nd support: lower border of the narrowing trading range
3rd support: daily EMA 100
1st support: one-hour EMA 200
2nd support: lower border of the narrowing trading range
3rd support: daily EMA 100
Resistance levels above:
1st resistance: upper border of the narrowing trading range
2nd resistance: 1.3690 (multiple highs)
3rd resistance: 1.3715 (January 27 high)
1st resistance: upper border of the narrowing trading range
2nd resistance: 1.3690 (multiple highs)
3rd resistance: 1.3715 (January 27 high)
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