The EUR/USD is fighting hard to embrace fresh new high, the price is trading right below the medium term resistance and he needs a bullish spark to be able to escape from the range movement. The currency pair continues to trade higher because the US dollar remains sluggish, the USD bulls are too weak to drag the price down, we have a short consolidation on the H1 and H4 charts, the price looks determined to climb further as the US dollar index has reached new lows and could drop even deeper in the coming hours as the index looks too heavy to be stopped.

The US dollar is under massive selling pressure after the FOMC Meeting Minutes were released, the dovish minutes could send the USD into agony, the greenback could hit new lows versus all its counterparts. Most likely the FED will maintain the rate on hold in 2016, the currency traders are disappointed because the Federal Reserve has promised that will increase the rate several times in 2016, but the current economic conditions don’t support the hike.

EURUSDW

You can notice the medium term sideways movement on the Weekly chart, the price is challenging the resistance and could jump above this obstacle if the US dollar index will slide further. The pair has been in a consolidation movement after the last massive drop started in 2014, the pair could start a broader correction phase if will breakout from this accumulation movement.

We have important activity on the EUR/USD right now after a couple days of indecision, we could have high volatility later today after the US Unemployment Rate data will be released and after the ECB President Draghi speaks.

EURUSDD

You can see that the price is approaching the 1.1451 major resistance, has ignored the confluence area formed at the intersection between the warning line (wl1) with the sliding parallel line, the price needs to consolidate above the horizontal resistance because he may need more energy to jump toward the median line (ML) of the ascending pitchfork. The EUR/USD has moved sideways since 2015 and now is having a very good chance to escape from the extended sideways movement, we have to wait for a breakout and a consolidation above the 1.1451 major level, the pair will start a broader correction phase if will have the power to stay higher. The perspective remains bullish as long as the price is trading inside of the ascending pitchfork’s body, the price could increase along the median line (ML), right now is hard to believe that will jump and stabilize above the ML.

EURUSDH

The H4 chart shows us the price action better, the bulls have taken full control after a short retreat, the price has given exhaustion signs after have touched the sliding parallel line, but the short term horizontal support from 1.1342 has rejected the price. The price is testing the sellers right now, is pressuring the 1.1451 static resistance, he could take out this resistance because the US dollar index is targeting new low, is forcing the greenback to decline further.

2 thoughts on “EUR/USD looks to trade higher April 7, 2016”

  1. Daniel Chan - Forex.Today says:

    Thanks . Good technical analysis.

  2. Eric Merejo says:

    Thanks

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