The pair moved down on Wednesday and tested the support line 1.107, presented in a white bold line, after that the price went up. Strong calendar news for the euro is expected today at 12:45 and 13:30 UTC and for the dollar at 16:00 UTC. The market will be narrow in anticipation of interest rates. It is very likely that interest rates will not change and the market may win back on this news.
Trend analysis (Fig. 1).
Before the news, there will be a downward side-channel today to the support line 1.1074 presented in a white bold line. We expect an upward movement, on the news with the first target 1.1102, the retracement level of 14.6% presented in a blue dashed line. Upon reaching this level, the next goal will be a retracement level of 23.6% equivalent to 1.1117, presented in a blue dashed line.
Fig. 1 (daily chart).
Comprehensive analysis:
- Indicator analysis - down;
- Fibonacci levels - up;
- Volumes - down;
- Candlestick analysis - up;
- Trend analysis - up;
- Bollinger lines - down;
- Weekly schedule - up.
General conclusion:
There will be a downward side-channel today, before the news hits. We expect an upward movement forecast. An unlikely, but possible scenario is from the support line 1.1074, presented in a white bold line, the price goes down to a pullback level of 76.4% equivalent to 1.1043, presented in a red dashed line.
