EUR/USD: consolidation pending new drivers 15 March 2021, 10:33

EUR/USD: consolidation pending new drivers

15 March 2021, 10:33

Scenario
Timeframe	Intraday
Recommendation	BUY STOP
Entry Point	1.2005
Take Profit	1.2100
Stop Loss	1.1950
Key Levels	1.1800, 1.1834, 1.1900, 1.2000, 1.2022, 1.2070, 1.2100

Alternative scenario
Recommendation	SELL STOP
Entry Point	1.1895
Take Profit	1.1800
Stop Loss	1.1950
Key Levels	1.1800, 1.1834, 1.1900, 1.2000, 1.2022, 1.2070, 1.2100

Current trend

EUR is trading in both directions against USD during today's Asian session, consolidating near the level of 1.1950. Friday's moderate optimism about macroeconomic statistics from the eurozone was balanced by another round of growth in US bond yields, as investors reacted to the start of the USD 1.9 trillion stimulus program. Industrial Production in the eurozone in January increased by 0.8% MoM after a decrease of 0.1% MoM in the previous month. Analysts had expected increase by 0.2% MoM only. On an annualized basis, production increased by 0.1% YoY, which was significantly better than the sharply negative market forecasts of –2.4% YoY. Additional pressure on the instrument is exerted by the recent decision of the European Central Bank to increase the volume of bond repurchases in the next quarter.

Support and resistance

Bollinger Bands in D1 chart demonstrate a stable decrease. The price range is narrowing, reflecting the multidirectional dynamics appearance in the short term. MACD indicator is growing preserving a weak buy signal (located above the signal line). Stochastic, having reached the level of "80", reversed into a downward plane, signaling the risks of a corrective decline in the ultra-short term.

To open new trading positions, it is necessary to wait for the signals from technical indicators to be clarified.

Resistance levels: 1.2000, 1.2022, 1.2070, 1.2100.

Support levels: 1.1900, 1.1834, 1.1800.

Trading tips

To open long positions, one can rely on the breakout of 1.2000. Take-profit – 1.2100. Stop-loss – 1.1950. Implementation time: 2-3 days.

The development of "bearish" trend with the breakdown of 1.1900 may become a signal for further sales with target at 1.1800. Stop-loss – 1.1950.