20 Mar 2015
EUR/USD on its way for a first weekly gain in five weeks
FXStreet (Mumbai) - The EUR/USD pair appears more likely than not to end the current week higher, thereby snapping the four-week losing streak after the Federal Reserve surprised markets earlier this week by reducing estimates for interest-rate increases.
EUR/USD: Inverted Hammer on Weekly chart
The pair appears to have formed an inverted hammer candlestick formation on the weekly chart, which indicates the pair could extend gains in the next week. Moreover, the shared currency found support from the upbeat comments from the ECB’s Draghi earlier this week, coupled with the disappointing ECB weekly QE purchases figure. Still, the real recovery was triggered by the slightly dovish Fed statement, which saw the EUR/USD pair rise to 1.1033 levels.
However, the major part of the gains were erased as the investors realized the Fed could still increase interest rates at any meeting post April. Thus, the pair was sold-off from a high of 1.1033 to the current level of 1.0666.
EUR/USD Technical Levels
The immediate resistance is seen at 1.0677, above which gains could be extended to 1.0747. On the flip side, a break below 1.0654 could drive the pair down to its 10-DMA located at 1.0619.
EUR/USD: Inverted Hammer on Weekly chart
The pair appears to have formed an inverted hammer candlestick formation on the weekly chart, which indicates the pair could extend gains in the next week. Moreover, the shared currency found support from the upbeat comments from the ECB’s Draghi earlier this week, coupled with the disappointing ECB weekly QE purchases figure. Still, the real recovery was triggered by the slightly dovish Fed statement, which saw the EUR/USD pair rise to 1.1033 levels.
However, the major part of the gains were erased as the investors realized the Fed could still increase interest rates at any meeting post April. Thus, the pair was sold-off from a high of 1.1033 to the current level of 1.0666.
EUR/USD Technical Levels
The immediate resistance is seen at 1.0677, above which gains could be extended to 1.0747. On the flip side, a break below 1.0654 could drive the pair down to its 10-DMA located at 1.0619.