The US dollar fell to a one-week low against most majors. The euro gained 0.6% close above 20Dsma and 200Dsma as well. The pair posted a strong close after six days.
Speculations keep on hitting the roofs that, the Federal Reserve may face headwinds as its considers higher interest rates while central banks in the US and Canada signaled confidence in their economies.
Eurogroup will discuss the Greek debt allegedly grace schedule on Saturday.
Fed policy makers meet September 16-17 to determine whether to raise rates for the first time in almost a decade. The central bank has held its short-term rate target at virtually zero since December 2008 to bolster the economy.
Today’s view: Traders eye PPI and prelim consumer sentiment data. Today’s trade remains on US data.
Overview: The pair managed to hold the 50Dsma on the ECB ‘s day, shifted the pattern to higher low and higher high. In the hourly chart, the pair gave a symmetric triangle breakout and minor inverse h&s breakout as well at yesterday’s session.
The nearest resistance seems at 1.1320 and 1.1335. Earlier swing high was at 1.1470 and 50Wsma at 1.1490. A weekly close above 50 Wsma rounded to 1.1500 the bulls aim at 1.1850.
Multiple resistance zone remains between 1.1420 200Dema, 1.1435 and 1.1470 earlier swing highs. The pair fails twice to close above the weekly swing high 1.1467. We can observe ascending triangle in the weekly chart. A daily close above 1.1330 the bulls aim at 1.1470 and 1.1490.
Intraday: The hourly momentum indicators are in overbought territory. Intraday buying momentum backs above 1.1300 aims at 1.1320 1.1330 and 1.1350. The inverse h&s pattern aiming at 1.1350.
Support finds at 1.1260, 1.1230 and 1.1200. We encourage selling only below 1.1160, real selling pressure builds below 1.1130. The recent strength only because of USD weakness.