EUR/USD: growth attempt at the end of the week 26 March 2021, 08:58

EUR/USD: growth attempt at the end of the week

26 March 2021, 08:58

Scenario
Timeframe	Intraday
Recommendation	BUY STOP
Entry Point	1.1805
Take Profit	1.1900
Stop Loss	1.1744
Key Levels	1.1600, 1.1657, 1.1700, 1.1744, 1.1800, 1.1834, 1.1900, 1.1950

Alternative scenario
Recommendation	SELL STOP
Entry Point	1.1740
Take Profit	1.1600
Stop Loss	1.1815
Key Levels	1.1600, 1.1657, 1.1700, 1.1744, 1.1800, 1.1834, 1.1900, 1.1950

Current trend

EUR is correcting slightly against USD during today's Asian session, trying to recover from a three-day "bearish" rally, which resulted in the instrument renewing its lows since November 11, 2020.

Some support for the pair is still provided by macroeconomic data from the eurozone on business activity, which stand out especially against the background of the difficult epidemiological situation in the region. Many European countries are forced to maintain significant restrictions on travelling and the work of small and medium-sized businesses, which slows down the process of economic recovery. Problems with vaccination against the background of the temporary ban of the drug from AstraZeneca and the bureaucratic delays in the process of approving the Russian Sputnik V vaccine have negative effect as well.

Investors are currently focused on the European Council summit, where on Thursday the prospects for maintaining the current restrictions were actively discussed. The leaders of European states preferred to abandon secondary political issues and concentrate on the problems of vaccination and the pandemic in general.

Support and resistance

Bollinger Bands in D1 chart demonstrate a stable decrease. The price range is expanding from below; however, it fails to catch the surge of the "bearish" sentiment at the moment. MACD is going down preserving a stable sell signal (located below the signal line). Stochastic, having reached its lows, reversed into the horizontal plane, indicating risks of oversold EUR in the ultra-short term.

Resistance levels: 1.1800, 1.1834, 1.1900, 1.1950.

Support levels: 1.1744, 1.1700, 1.1657, 1.1600.

Trading tips

To open long positions, one can rely on the rebound from the support level of 1.1744 with the subsequent breakout of 1.1800. Take-profit – 1.1900. Stop-loss – 1.1744. Implementation time: 2-3 days.

The breakdown of 1.1744 may serve as a signal to new sales with the target at 1.1600. Stop-loss – 1.1815.