The Euro / Dollar currency pair resumed its downward interest after the completion of the periodic level of 1.1650, where the quotation quickly came down to our "unbreakable" range of 1.1510 / 1.1550. What gave the market volatility? Yesterday was the second day of the ECB forum, where dear Mario Draghi once again pleased the speculators with a statement about an imminent increase in the interest rate and, possibly, a further extension of the quantitative easing program, whereby the result, we will not see a rate increase for a very long time. Today, there are two more speeches before the traders, Fed Chairman Powell and Head of ECB Draghi, and the most interesting is that the performances are scheduled for the same time, 14: 30 BST, thus waiting for volatility.
Further vision
The downward interest remains, but before the quotation, everything is still worth a range of 1.1510 / 1.1550, the recent rapprochement with the lower border has temporarily returned buyers, but is this debt? At the moment, I have three possible variations, which I'm guided by:
First, the quotation returns to the range of 1.1510 / 1.1550, where "bears" will hold the quotation, gradually trying to lock below.
The second, due to the news background, the quote for the time will hang on the current coordinates and after 14:30 London time, in the case of continuing negative growth, we will overcome the range level, fixing below.
Third, the news background will not react at all in the market, which I personally doubt, and thus the movement in the range of 1.1510 / 1.1650 will continue with the return to the upper boundary.
Indicator analysis
Analyzing the different sector of timeframes (TF), we see that short-term TF has an upcoming interest, but this reflects the current stagnation / rollback, in the more medium term, interest is still on the sale. The general conclusion is: First and Second variation, a further downward move is possible.
Key Levels
Resistance zones: 1,1650 *; 1,1725 *; 1,1830 *; 1.1900; 1,2100
Support zones: 1,1550 ** (1,1510 / 1,1550); 1.1440; 1,1300 **
* Periodic level