After return above 1.0800 at the beginning of the week, upward movement continues. Main doubt in this week was Thursday’s FOMC decision on interest rates and more specifically the meeting protocol. In the announcement there were a dovish elements, especially indication that interest rates should be lowered because of the situation on Wall Street, and the risk of inflation associated with oil depreciation and dollar increases. Finally without sudden movements EURUSD continued upward impulse initiated on Monday.
Region 1.0930, which was tested today is the upper limit of downward channel in which EURUSD moved since December 4. Successful break above 1.0930 should move price to 1.1050, which is 3-months high. Alternatively if there will be a rebound nearest supports are located at: 1.0870, 1.0800.
Time-frame H4
