The euro rebounded from the weak US data. The ECB helped the euro to rebound against USD. At yesterday's meeting, the Governing Council of the ECB decided that the interest rate on the main refinancing operations and interest rates on the marginal lending facility and the deposit facility will remain unchanged at 0.05%, 0.30%, and -0.20% respectively. The euro edges higher 1.0747 at today's Asian session and faced parallel resistance at 1.0751 and 1.0800 20Dsma. The ECB continues the buying assets under QE until September 2016.
The one-hour and four-hour time frames shifted to buying. The euro rebounded to 1.0747 after a low made at 1.0520. The double bottom was placed at 1.0520 and 1.0532. Higher highs and higher lows are forming. Intraday support is found at 1.0659 and 1.0640. Intraday resistance is seen at 1.0751. We expect a pullback rally to stop between 1.0760 and 1.0790. We recommend safe buying above 1.0805 with a target at 1.0880. Today, traders eye on the US data. The US major data include figures for building permits, unemployment claims, Philly Fed Manufacturing index and housing starts. We do not expect positive readings today except for unemployment data. The euro seems to be unable to close above 20Dsma. The 61.8 fib extension at 1.0700 is likely to act as trend-change level. We recommend selling below 1.0700 with targets at 1.0670, 1.0660, and 1.0620. Spikes will add selling opportunities. Eventually, the positional view still favors bears.
Trade: Buy above 1.0805, sell below 1.0700.
Risky traders can buy above 1.0760 with targets at 1.0790 and 1.0850.
The material has been provided by InstaForex Company - www.instaforex.com
