Short covering story was developed in the previous week, which helped the pair to recover 2% of its losses. The dovish Federal Reserve statement helped the euro to gain ground against the US dollar. As we expected, shocking upswing wild moves took place that informs us of short reinforcement. After the FOMC meeting, Greece's tensions again came to existence. Greece's Prime Minister Tsipras relies on EU funds. David Cameron said on Friday that EU leaders and officials will breathe "a sigh of relief" if he loses the general elections in May. Technically and fundamentally the euro looks bearish towards the 0.9000 levels.
Upcoming economic events:
Today, traders eye ECB President Draghi's speech in Brussels. Consumer confidence index is expected to give an uptick. It's been improving for the last 3 months. Besides, German Bundesbank monthly report is due. If Draghi's speech and Consumer confidence data deliver an optimistic view on the eurozone short, the single European currency will extend an upward bias to 1.1200. But the chances are remote.
Weekly technical view:
The pair has been facing strong resistance at 20Dsma. The pair has been rejected thrice from 20Dsma. At today's early Asian session, it was again rejected. The prices are closed and trading above hourly moving averages. Until the price closes above 1.0600, bulls are trying to hold their grip. This view is valid for this week. Weekly resistance seems at 1.0920, 1.1450, and 1.1635. Support is found at 1.0600 and 1.0460. In case the price closes below 1.0460, bears can challenge 1.000 and 0.9900 in the near term.
Intraday:
Support is found at 1.0700 and resistance seems at 1.0920. We recommend fresh buying only above 1.0920 with targets at 1.1000 and 1.1035. In case of the negative economic data, sell below 1.0700 with targets at 1.0620, 1.0600, 1.0580, and 1.0550. Panic will be triggered below 1.0580.
Trade: buying above 1.0920.
Selling below 1.0700.
Risky traders can sell with sl 1.0890.
To contact the author of this analysis, please email joseph.wind@analytics.instaforex.com
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