The single currency of the European Union region rose significantly, showing its five-year low since 27 January, 2017, against the US dollar following developments and economic data that followed on Friday the economies of the eurozone and the US economy, the largest economy in the world, which included European Central Bank Governor Mario Draghi speaking at the Frankfurt European Banking Conference.
Today, at the opening of the Asian session, we see a correction and a slight decline of the EURUSD against the USD to 1.1400, compared with the opening levels at 1.1411 after the pair reached its highest level since November 8 at 1.1424.
Technical analysis:
The EURUSD pair rallied strongly to near our main target at 1.1443, reinforcing our bullish outlook, noting that a breach of this level would extend the pair's gains to 1.1550 as the next major station, while stability above 1.1300 is an important requirement for continued bullishness.
We are trading above the moving averages 7-20-50 and wait for the ideal order to consolidate its bullish movement. The Stochastic is moving in the overbought zone and a cross signal appears indicating a possible correction movement.
Support and resistance:
Support: 1.1342-1.1300;
Established: 1.1443-1.1500.
The general tendency: upward.