By Admiral Markets
The EUR/USD edged a bit higher after Thursday’s ECB Meeting. The ECB lowered its projections for economic growth, and warned about potential dangers with the US-China Trade War. Mr.Draghi, the ECB president, explained that rising protectionism, vulnerabilities in emerging markets, and financial market volatility had “gained more prominence.” There is still a fear of a potential escalation. What is also important is that the rates are put on hold. The Refi rate is still 0%, while the deposit rate is at -0.4%.
Technically the EUR/USD is bullish, as it is breaking above the ascending flat top triangle, which suggests bullish continuation. This is the bullish formation with explicit support and resistance levels that traders should monitor. 1.1635-50 is the POC zone, and any pullback to the zone might be used for fresh buying. Targets are Pivot confluence points 1.1724 and 1.1758, with a possible extension to 1.1816 if we see a close above 1.1760. Bear in mind that today is Friday, so we could see a profit taking. If the pair makes a weekly close above 1.1760, then the door to 1.1816 could be open next week.
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Short Pivot Lines – Daily Support and Resistance
Long Pivot Lines – Weekly Support and Resistance
POC – POC – Point Of Confluence (The zone where we expect the price to react – aka the entry zone)
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Article by Admiral Markets
Admiral Markets is a leading online provider, offering trading with Forex and CFDs on stocks, indices, precious metals and energy.