The past week saw EURUSD traded to a key level. Let’s take a look at EURUSD Technical Analysis ahead of the new trading week and what to expect.
12 March, AtoZForex – The past week, we saw some key fundament events unfolded. Among these is the ECB meeting. The ECB left monetary policy unchanged. However, the most important part of the meeting was the President Mario Draghi’s conference. EUR/USD raced above 1.06. Nodding to the improvements in growth and inflation, the central bank raised its 2017 and 2018 GDP forecast by 0.1% and boosted this year’s inflation forecast to 1.7% from 1.3%. Mario Draghi admitted that economic risks are less pronounced and the ongoing economic expansion should be firm and broaden. These less dovish comments from Draghi encouraged traders to take profits on their short euro positions and while dollar bulls and euro bulls will need to battle it out, the euro should outperform other currencies. Aside from the German and Eurozone ZEW survey. There are no major euro economic reports scheduled for release in this coming week.
EURUSD Technical Analysis ahead of the new trading week
EURUSD Daily Technical Analysis
Looking from the Daily frame, the levels we talked about in our piece EURUSD Technical Analysis ahead of March ECB MEETING remains intact. The trend line connecting December low to February low has been firmly supporting the EURO from breaching that region. Finally, the top of the falling wedge (bullish) we talked about on Friday has been taken out. Not just that, the eurusd closed above its 100-Day Moving Average as well. This further adds credence to our bullish scenario going into the fresh trading week. However, a retest of at least the broken trendline at 1.0620 is expected. Going into the new week, we like to see a reaction around the support to initiate our long position for the week.
EURUSD Hourly Technical Analysis
The 4 hourly frame of the EURUSD looks quite constructive going into the new week. What happens around the retest of the broken upper side of the trendline in the new trading week should inform our next decision. Particularly, the 1.0620 support level shouldn’t be breached if we must continue to hold our bullish bias for the EURO. We shall keep you abreast of the happenings on this pair within the week