EUR/USD consolidating below 1.1440

5 February 2015, 16:12
Andrius Kulvinskas
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 Valeria Bednarik, Chief Analyst at FXStreet, notes that the EUR/USD pair is consolidating below the 1.1440 fibonacci level, and a break below this immediate resistance might lead to further gains towards 1.1480.

Key Quotes

“The EUR/USD pair trades back and forth in a wide intraday range, quite sensitive to news coming from Europe and Greece. Late Wednesday, the ECB announced in a press release that they won't accept any longer Greek debt bonds as collaterals, sending the pair as low as 1.1303.”

“Later on the day, the European Commission, upgraded its Euro zone growth forecasts for 2015, while predicting growth for every country in the EU in 2015 for the first time since 2007 which boosted the pair up to 1.1455.”

“The pair however, retraced some and now consolidates below the 1.1440 Fibonacci level, the immediate resistance.”

“The 1 hour chart shows that indicators are losing upward strength near overbought territory, whilst 20 SMA converges with another Fibonacci level at 1.1365, providing a strong support in the case of a retracement.”

“In the 4 hours chart, technical readings present a neutral stance above their mid-lines, while 20 SMA provides intraday support around 1.1390. Renewed buying interest above the 1.1440 level should see the pair surging back towards the 1.1480 price zone.”
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