The Euro gained grounds against the slightly weakened U.S dollar during last week’s trading session forming a support at 1.22459 as the market seems to be over-sold .Weekly bias remains slightly on the upside in the medium term picture as 21 and 55 Exponential Moving Average are freshly crossed upward on the 4 hours charts while the bearish trend in the daily charts still remains intact.
Am expecting more rise of price in the pair to 1.25800 psychological resistance if price breaks 1.24936 resistance successfully. The 1.25800 resistance lies on the 55 EMA on the daily charts so this should be the 1st realistic target. Price action patterns would be monitored closely on the 55 EMA on the daily charts should in case there is a bounce of price, which could resume the bearish trend in the pair.
However, on the downside a break of 1.22459 supports will resume the bearish trend in the broader picture to 1.20442 supports, as the current minor rise could be regarded as a wave correction of the bearish trend. A successful break of 1.20442 supports will bring further decline to 1.16380.
This week’s trading would be decided by the FEDS on Wednesday as investors would be taking close look at the United States Interest Rate Statement and the FOMC Economic Projections. Investors will be awaiting the outcome of the Federal Reserve policy meeting for further clarification on when interest rates might start to rise.