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3 Mar 2015
EUR/USD may rise to 1.1237, inverted H&S on hourly chart – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, notes that technicals suggest that the EUR/USD pair might move higher towards 1.1237, a break above which might lead the pair towards 1.1316 levels.
Key Quotes
“The EUR/USD pair rose to a high of 1.1239 in the previous session, but failed to sustain gains above the 76.4% retracement (of 1.1096-1.1532) located at 1.12.”
“The ECB President’s optimistic outlook on the Eurozone economy last week, coupled with the strong manufacturing PMI data released yesterday builds a strong case for an up move in the shared currency.”
“Moreover, the strength in the US dollar contradicted the disappointing data – personal spending fell for the second month, while personal income, construction spending all disappointed expectations. Still the USD recovered, largely tracking the strength in the Treasury yields. Thus, a slight decline in the yields today could be enough to push the EUR/USD pair above 1.12 levels.”
“The inverted hammer candle on the daily chart supports a fresh move towards the hourly chart inverted head and shoulder neckline resistance at 1.1237. A break above the same could open doors for a target of 1.1316 levels.”
“On the other hand, a failure to rise above 1.1237 could lead the pair down to 1.1158 levels.”
“The growth in the German retail sales is seen slowing down to 2.6% year-on-year in Jan, compared to 4.8% in December. A better-than-expected print could help the pair rise above 1.1237 levels.”
Key Quotes
“The EUR/USD pair rose to a high of 1.1239 in the previous session, but failed to sustain gains above the 76.4% retracement (of 1.1096-1.1532) located at 1.12.”
“The ECB President’s optimistic outlook on the Eurozone economy last week, coupled with the strong manufacturing PMI data released yesterday builds a strong case for an up move in the shared currency.”
“Moreover, the strength in the US dollar contradicted the disappointing data – personal spending fell for the second month, while personal income, construction spending all disappointed expectations. Still the USD recovered, largely tracking the strength in the Treasury yields. Thus, a slight decline in the yields today could be enough to push the EUR/USD pair above 1.12 levels.”
“The inverted hammer candle on the daily chart supports a fresh move towards the hourly chart inverted head and shoulder neckline resistance at 1.1237. A break above the same could open doors for a target of 1.1316 levels.”
“On the other hand, a failure to rise above 1.1237 could lead the pair down to 1.1158 levels.”
“The growth in the German retail sales is seen slowing down to 2.6% year-on-year in Jan, compared to 4.8% in December. A better-than-expected print could help the pair rise above 1.1237 levels.”