Despite the fact that the EUR / USD declined during today's Asian session, it remains positive and has a tendency to further rise.
European assets look more attractive compared to US assets, and the European economy is recovering at a faster pace.
On Wednesday, the pair rose to a new 21-month local high of 1.1805. After the correction, which is observed in the first half of today's trading day, the resumption of the upward dynamics of EUR / USD is likely.
The pair is traded in the area above the long-term and key support level 1.1380 (ЕМА200 on the weekly chart). The tendency for further growth may lead EUR / USD to resistance levels of 1.2090 (ЕМА200 on the monthly chart), 1.2180 (Fibonacci level 50% of the upward correction in the wave of the pair's decline from the level 1.3870, which began in May 2014).
In the alternative scenario and after the breakdown of the support levels 1.1420, 1.1285 (ЕМА144 on the weekly chart and Fibonacci level 23.6%), the pair will continue to decline towards the support levels 1.1170, 1.1150, and a return into the zone below the support level 1.1150 (ЕМА200 on the daily chart) will mark a resumption of the bearish trend.
A breakdown of the short-term support level 1.1640 (ЕМА200 on the 1-hour chart) may become a signal for the implementation of this scenario.
Support Levels: 1.1640, 1.1550, 1.1420, 1.1380, 1.1350, 1.1285, 1.1170, 1.1130
Resistance Levels: 1.1780, 1.1805, 1.2090, 1.2180
Trading Recommendations
Sell Stop 1.1635. Stop-Loss 1.1810. Take-Profit 1.1600, 1.1550, 1.1420, 1.1380, 1.1350, 1.1285, 1.1170, 1.1130
Buy Stop 1.1810. Stop-Loss 1.1635. Take-Profit 1.2090, 1.2180
