Weekly commentary for EUR / USD pair on November 14-19
From a technical point of view, breaking the above levels allows us to assume that the euro should further strengthen against the dollar. If we look at the monthly chart, we can see that the target should be the 1.25-1.26 zone, where the upper limit of the inheritance channel started from 1.6039. (At 1.2601, there is a 61.8% drop in the decrease from 1.3996 to 1.0343).
Considering the strong buy-out, the nearest hours should pass in terms of the correction of recent increases. It is also worth mentioning that current price levels are not an ideal place to initiate long positions. In connection with the above, the continuation of the upward movement should follow the expected correction. The closest support is at 1.2165-70 (minimum from the second half of December 2014, which coincides with the 50% cancellation of fibo decreases from 1.3996 to 1.0343). Zone 1.2081-94 remains a strong support, the maintenance of which will support the demand side. The situation of the supply side can be improved only in the event of overcoming the mentioned support. (Further support levels are at 1.1909-26, which was defeated last week).
Considering the strong buy-out, the nearest hours should pass in terms of the correction of recent increases. It is also worth mentioning that current price levels are not an ideal place to initiate long positions. In connection with the above, the continuation of the upward movement should follow the expected correction. The closest support is at 1.2165-70 (minimum from the second half of December 2014, which coincides with the 50% cancellation of fibo decreases from 1.3996 to 1.0343). Zone 1.2081-94 remains a strong support, the maintenance of which will support the demand side. The situation of the supply side can be improved only in the event of overcoming the mentioned support. (Further support levels are at 1.1909-26, which was defeated last week).
Comment:
Summing up, after the expected adjustment to the game, the demand side should be included, which will face the chance to push the eurodollar towards the higher price levels. The nearest resistance is at 1.2218-28. The next resistance can be set at 1.2247 and 1.2271-85. The further resistance will be 1.2359 and 1.2376.