On Tuesday, the euro/dollar pair moved down and tested the retreatment level of 85.4% - 1.1711 (red dotted line). Then it dipped a little, closing the daily candlestick at 1.1716. Today, the pair may start moving up from the level of 1.1716. On Wednesday, the economic calendar includes crucial economic reports, which are due at 10.55 and 12.00 MSK (EUR), at 15.15 and 17.00 MSK (USD)
Trend analysis (pic. 1).
On Wednesday, from the level of 1.1716 (the closing of yesterday's daily candlestick) the pair is likely to try to reach 1.1745 – a pullback level of 14.6% (blue dotted line). In the case of testing this level, the pair may continue to rise to the target level of 1.1813, which is a pullback level of 38.2% (blue dotted line).
Pic. 1 (daily chart).
Complex analysis:
- indicator analysis- up;
- Fibonacci levels – up;
- volumes – up;
- candlestick analysis – up;
- trend analysis-up;
- Bollinger bands – up;
- weekly chart - up.
Conclusion:
Today, the euro/dollar pair may start moving upwards to the target level of 1.1716 (closing yesterday's daily candlestick). It may also try to reach 1.1745 – a pullback level of 14.6% (blue dotted line). In the case of testing this level, it may continue to climb to the target level of 1.1813, which is a pullback level of 38.2% (blue dotted line).
The alternative scenario: from the level of 1.1716 (the closing of yesterday's daily candlestick), the euro/dollar pair may move down to the target level of 1.1637, the lower border of the Bollinger Line indicator (the black dotted line). When testing this level, it may move upwards to the target level of 1.1745, the pullback level of 14.6% (blue dotted line).
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