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Home » Daily Technical Reports » EUR/USD Technical Report 17/03/2016

EUR/USD Technical Report 17/03/2016

EUR/USD surged on Wednesday after the FOMC lowered its forecasts for future rate increases by 50 basis points for each of the next two years. Fed officials now expect to hike twice in 2016, significantly down from December’s forecasts of four rate increases. The rally brought the rate above two resistance (now turned into support) barriers to hit resistance slightly above the 1.1220 (S1) hurdle, defined by the peak of the 10th of March. During the early European morning, the rate emerged above that barrier and as a result, I would expect the bulls to continue pushing the rate up, perhaps to challenge the next hurdle of 1.1270 (R1). Looking at our short-term oscillators, I see that the RSI edged higher and now appears ready to challenge its 70 line, while the MACD, already positive, has bottomed and crossed above its trigger line. These indicators detect upside speed and corroborate my view. Switching to the daily chart, I see that EUR/USD is still trading between the 1.0800 key zone and the psychological area of 1.1500. Therefore, I would keep the view that the broader trend remains sideways.



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