EURUSD chart wednesday

EURUSD-

The EURUSD tried to break out to the upside during the session on yesterday but ran into a significant amount of resistance above the 1.06 level. Because of this, the market ended up falling and forming a shooting star, which is a negative sign. We believe that the market will then head down to the 1.05 level, which has been supportive in past. We believe that a break down below there will send the Euro down to the parity level, which is our longer-term target.

EUR/USD eyeing 1.0600

[EUR/USD] Forex Investor Tips-

 

“The EUR/USD pair witnessed the strongest rise in more than two weeks on Monday as it clocked a high of 1.0618 levels. The technical driven strength in the shared currency was further supported by the disappointing US data, upbeat comments from the ECB President Draghi and disappointing weekly QE purchases number announced by the ECB.”

“The central bank purchased bonds worth EUR 9.751 billion, which is considerably lower than the average EUR 15 billion per week required to achieve its EUR 60 billion per month target. Slow pace of purchases is Euro positive since it means liquidity is being injected at a slow speed.”

“Meanwhile, Draghi, in his speech, noted a sustained recovery in the Eurozone economy. However, caution ahead of the FOMC meeting made sure the pair gave up its gains to trade at 1.0560 levels at the time of writing.”

“A fresh demand for Euros can be anticipated in the range of 1.0530-1.0550, especially if the German Zew survey index prints an optimistic picture about the German economy. Moreover, a strong Zew number, coupled with a stability in the EU CPI in February would support upbeat comments made by Draghi yesterday. In such a case, we could see the pair make another attempt at 1.06 levels.”

“A break above 1.06 could see the pair rise to 1.0650, where a fresh selling pressure could emerge ahead of the FOMC meeting.”