EUR/USD rebounds from 1.2005
New trading session the currency exchange rate started with a rebound from alleged support zone located between the 1.2005 and 1.1992 levels. Until release of information on employment change in the United States the pair is expected to spend fluctuating in a two-day long junior descending channel whose boundaries are covered by the 55- and 100-hour SMAs. Due to existence of the above support area and the medium scale uptrend the Euro is expected to continue to appreciate against the Dollar tending to reach and test the two year maximum at the 1.2100 mark. In general, there is a need to keep in mind changes in traders’ sentiment, which is becoming too bearish that in nearest perspective might lead to a new turnaround.
New trading session the currency exchange rate started with a rebound from alleged support zone located between the 1.2005 and 1.1992 levels. Until release of information on employment change in the United States the pair is expected to spend fluctuating in a two-day long junior descending channel whose boundaries are covered by the 55- and 100-hour SMAs. Due to existence of the above support area and the medium scale uptrend the Euro is expected to continue to appreciate against the Dollar tending to reach and test the two year maximum at the 1.2100 mark. In general, there is a need to keep in mind changes in traders’ sentiment, which is becoming too bearish that in nearest perspective might lead to a new turnaround.
In accordance with expectations, the common European currency continued to rise against the Dollar and by the end of the previous has reached the weekly R1 at 1.2074. In the meantime, the pair has also formed a minor bullish pennant pattern, which presupposes further surge towards the two-year extremum located at the 1.2093 mark.
Although today’s release of information on the American labour market provides good opportunity for a breakout, the currency rate is still expected to make a rebound and return back to the rising 55- and 100-hour SMAs. A one-week long junior ascending channel supports this assumption. In addition to that, 54% of pending orders in 50-pip range are set to buy.