Since mid-October, EURUSD quotations have remained below 1,1500, and on 12.11 set the minimum price of last year at 1,1215. Since then, the price has been moving in consolidation and in principle, the pair was unsuitable for trading, the movements were chaotic and unpredictable.
Yesterday, after the publication of the minutes of the FED meeting indicating a change in attitude (to a more restrained one) regarding further increases in interest rates in the USA, the EURUSD exchange rate revived and quite decisively broke out of the consolidation, defeated 1.15, reaching 1.1570. If the growths are continued, the nearest supply zone may be the target, 1.1580 and afterwards another one at 1.17.
On D1 I marked the zone (green), which is currently a support zone for further growths. Its permanent defeat (confirmed by daily candle closure) may negate the growth scenario and bring a return to consolidation.
And which variant will work? I bet on growths, and what the market will decide we will see in a few days because the analysis belongs to the cycle “When Theory Meets Practice” and according to the assumptions of the cycle is verified on the weekend.
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