EUR/USD confirmed our expectations and answered our question in a previous post with a direct fall from 1.1172 to 1.0459 during the first 2 weeks of March, 2015.
ECB started its QE (~to buy a total of €60 billion a month in assets including government bonds, debt securities issued by European institutions and private-sector bonds). This directly means a weaker euro. The EUR/USD found a minor support at 1.0459 few days ago and it tested it once, we are expecting another test for this support level before trying any major resistance level. Federal Reserve System (Central bank of America) will release its monthly statement tomorrow 18th, March 2015 and every one is waiting any clue for the timing dilemma of the american interest rate hike. With all these elements on the table, I am not feeling comfortable to trade this pair the next few hours especially with Greece’s smoke is everywhere in the air.
The EUR/USD has the following major resistance and support levels:
- RESISTANCE: 1.0755
- SUPPORT: 1.0459
- Sell at: 1.0455 – Take Profit 1.0400 (55 pips profits)
- Sell at: 1.0755 – Take Profit 1.0725 (30 pips profits)
QUICK HINT: EURUSD is still dangerous pair, I recommend using very low leverage and do not risk more than 2% of your total equity in it.
This signal is valid during trading week: 17th-20th March 2015