1.0930 Target for Euro/Dollar

EUR/USD Hourly Graph

EURUSD 1H

Trading Yesterday:

The euro managed to sit at 1.0850 throughout the first half of Wednesday. After the February ADP data came out better than expected, the euro came under another wave of sales. Employment in the US private sector rose by 214,000 compared with a forecasted 190,000 and 193,000 in January. The report offered short term support to the dollar.

The driver weakening the euro was the euro/pound which fell by 120 points to 0.7690. The GDP/USD managed to avoid a fall and reach a maximum for the week due to the euro falling. The euro/pound fell by 120 points and the pound dollar rose by 170 points to 1.4092.

Main news of the day (EET):

  • 11:30, February business activeness indices in the service sector for the UK;
  • 12:00, Eurozone January retail sales changes;
  • 15:30, US initial unemployment benefit applications;
  • 16:45, US Markit service sector activity index for February;
  • 17:00, US ISM business activity index in service sector and data on manufacturing orders for January.

Market Expectations:

The bearish set up on the euro continues, but I believe that we could see a strengthening of the euro against the dollar on Thursday as part of a correctional movement, following the pound/dollar and Australian/American dollar pairs. Trader attention will be on the publication of data regarding business activity in the service sector in different parts of Europe and the US.

Technical Analysis:

  • Intraday target maximum: 1.0930, minimum: 1.0845, close: 1.0900;
  • Intraday volatility for last 10 weeks: 103 points (4 figures).

This morning the euro was trading at around 1.0845. The price is at the balance line. This means that the market is balanced on the hourly and that the price is readying to stray from the LB by 0.6% or 1%.

The pound/dollar has risen by 270 points over the past three days and the euro has fallen by 60 points in this time. The time has come to reduce the gap between the pairs. As soon as the euro/pound starts to correct, the euro will quickly win back its losses due to the general weakening of the dollar. We will see it reach at least 1.0960.

EURGBP 1H

Yesterday I expected to see a rise in the cross to 0.7820. The euro strengthened against the pound to 0.7812 due to a weak UK construction sector PMI. In the second half of the day the sellers broke the support zone and brought the rate to 0.7690.

The trend line on the hourly runs through 0.7760. After a four-day fall, I expect an upward correction to the trend line. I am not looking at the news since the pound has been strengthening against the dollar (by 270 points) with weak UK stats. I believe that the euro could move by at least one figure without any news.

 EUR/GBP Hourly Graph

Daily

On Wednesday the euro/dollar shifted the weekly maximum to 1.0825. Two daily candles with long shades have formed. They are not so large, but indicate a slowing of the euro weakening. The stochastic has formed a euro buy signal. The CCI indicator is readying to cross the -100 line. I am sure that many traders have set Buy Stops on the euro at the maximum. I expect a rebound to 1.0960.

 EUR/USD Daily Graph

Weekly

I am waiting for the NFP on Friday and the candle for the week to close.

EUR/USD Weekly Graph

Source:: 1.0930 Target for Euro/Dollar

About the Author
Alpari was founded in 1998 and is one of the world’s leading Forex brokers, offering clients a full package of the most modern financial instruments and technological solutions for online trading and investment. According to data from Finance Magnates, Alpari has been one of the largest Forex brokers in the world for a number of years. The trading turnover of the Alpari companies in 2014 was 2.5 trillion USD. Today Alpari is the world’s largest MetaTrader 4 Forex broker. The first half of 2015 saw company branches offering their services to over one million clients from over 150 countries in the world. Alpari clients have access to over 50 currency pairs and an extensive range of other instruments. The company offers the use of three trading platforms for computer and mobile applications for use with iOS and Android. Alpari is a member of international organizations such as The Financial Commission (Hong Kong) and CRFIN (Russia). Bonuses: the Alpari Bonus Program was launched in 2014 and allows clients to independently change their conditions for working on the financial market: reduce commission, save money on swaps, improve conversion rates and much more. Read More about Alpari HERE or you can visit their website direct by CLICKING HERE..

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