On Wednesday, the euro/dollar pair moved up and broke through the 85.4% retracement level - 1.3944 (yellow dotted line), closing the daily candle at 1.3957. Today, the price will most likely continue to trade upwards, but a lot will depend on the news releases. Today's macroeconomic calendar is full of important releases which may affect the dynamics of the pound sterling and the US dollar.
Trend analysis (Fig. 1).
Today, the market is likely to continue moving upwards from the level of 1.3957 (closing price of yesterday's daily candle) to the target of 1.4003 - the upper fractal (daily candle of March 12, 2021). After testing this level, the quotes are expected to advance with a view to reaching the target of 1.4217 - the historical resistance level (blue dotted line).
Fig. 1 (daily chart).
Comprehensive analysis:
- Indicator analysis - up;
- Fibonacci levels - up;
- Volumes - up;
- Candlestick analysis - down;
- Trend analysis - up;
- Bollinger lines - up;
- Weekly chart - up.
Conclusion:
Today, the euro/dollar pair is likely to continue trading upwards from the level of 1.3957 (closing price of yesterday's daily candle) to the target of 1.4003 - the upper fractal (daily candle of March 12, 2021). After testing this level, the quotes are expected to advance with a view to reaching the target of 1.4217 - the historical resistance level (blue dotted line).
Unlikely scenario: the pair may go down from the level of 1.3957 (closing price of yesterday's daily candle) to 1.3860 - the support line (red bold line). After testing this level, the quotes may resume their bullish movement towards the target of 1.3944 - the 85.4% retracement level (yellow dotted line).