Wednesday, March 14, 2018

Despite The Neutral EUR/USD Session Today I Expect A Rally

EUR/USD could not break out below the support at 1.2300 although it very briefly reached 1.22728, then quickly rallied and the D1 bar closed at 1.2309, after which there was a rally to 1.24124.

There is still time until the current D1 bar closes and although its closing appears hesitant, my prognosis is more for a rally. A breakout above 1.2430 will provoke a movement toward 1.2460, where is the first stronger resistance level.

In case the pair overcomes that resistance we could expect a renewal of the upward movement to 1.2550 and 1.2600.

The drop appears less and less probable, but in this alternative bearish scenario the pair could test the trend line of the upward movement (in blue). The reason for that are the two closed W1 bars.