Technical Analysis of EURUSD
EUR/USD continues its uptrend movement in the last week of March with the pair breaking out above 1.3300 on Monday, as the Federal Reserve Chairman referenced continued accommodative policies, fuelling speculation for another round of quantitative easing and bringing the US Dollar to its lowest in three weeks. With a quite economic calendar in European hours the focus is likely to turn to the US Consumer Confidence gauge and the Richmond Fed Manufacturing Survey later today, which are both expected to pull back in March, opening the door for fresh upside for the EUR/USD towards the year highs at 1.3590.
At the time of writing, the pair is hovering around 1.3354, the 38.2% Fibonacci level from the August high to January low. The technicals on the daily chart paint a bullish picture for the single currency with the RSI holding steady above 50 and the MACD signal line flipping over zero. The bullish alignment of the 20 EMA over the 50 EMA on the hourly chart favours further long positions in the EUR/USD. Should the market test the current level successfully, the next target to watch is the 50% Fibonacci level at 1.582, with the previous resistance area 1.3290 – 1.3300 acting as support to sustain this bullish move. In the alternative scenario, a break below 1.3190 could relieve the top side pressure and put focus back on the downside towards the 1.3162 area.
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