Euro parity still in play ahead of decisive US inflation data, for that common currency came within whisker of 1.0248 this week. Right now, the EUR/USD pair is still moving around the price of 1.0248. The currency pair EUR/USD is trading below the resistance levels of 1.0273, 1.0331 and 1.0380.
The euro to US dollar (EUR/USD) rate has fallen about 0.25% year-to-date to trade around 1.0248. The raise is comparable to gain last seen for three weeks, when the European Central Bank unleashed its massive stimulus programme. The EUR/USD pair continues to move upwards from the level of 1.0064, which represents the double bottom in the hourly chart.
Yesterday, the pair rose from the level of 1.0064 to the top around 1.0248 USD. Today, the first resistance level is seen at 1.0273 followed by 1.0331 and 1.0380, while daily support is seen at the levels of 1.0100 and 1.0066.
According to the previous events, the EUR/USD pair is still trading between the levels of 1.0084 and 1.0331. Hence, we expect a range of 243 pips in coming hours (1.0331 - 1.0084).
The first resistance stands at the price of 1.0273, therefore if the EUR/USD pair succeeds to break through the resistance level of 1.0273, the market will rise further to 1.0331.
This would suggest a bullish market because the RSI indicator is still in a positive area and does not show any trend-reversal signs. The pair is expected to rise higher towards at least 1.0331 in order to test the second resistance (1.0331).
The US Dollar and the Euro are two of the most prominent and well-known currencies in the world. The Euro versus US Dollar (EUR/USD) currency pair has the largest global trading volume, meaning it is the world's most-traded currency pair. Whether you find the instrument easy or difficult to trade on, it's not a pair that many traders neglect, due to its daily volatility and price movement.
Thus, the market is indicating a bearish opportunity above the above-mentioned support levels, for that the bullish outlook remains the same as long as the 100 EMA is headed to the upside.
Today, support is seen at the levels of 1.0066 and 1.0184. So, we expect the price to set above the strong support at the levels of 1.0066 and 1.0184; because the price is in a bearish channel now.
The RSI starts signaling upward trend. Consequently, the market is likely to show signs of a bullish trend. Thus, it will be good to buy above the level of 1.0184 with the first target at 1.0273 and further to 1.0331 in order to test the daily resistance.
If the EUR/USD pair is able to break out the daily resistance at 1.0380, the market will rise further to 1.0380 to approach support 3 in coming hours or two days. However, the price spot of 1.0380 and 1.0331 remains a significant resistance zone. Therefore, the trend is still bullish as long as the level of 1.0066 is not breached.