EUR/USD surges to 1.1850
Despite the fact that tax bill passed through the House, the currency exchange rate continued to move upwards and ended the day in the previously specified resistance zone located around the 1.1845 level. The further advance of Euro is possible, even though it is unlikely to exceed the 1.1860 mark, as this area represents location of the upper-boundary of a one-month long descending channel. A plunge below the monthly PP at 1.1806 is also doubtful, as it is additionally secured by the rising 55-, 100- and 200-hour SMAs. On the other hand, there is a need to take into account that there are scheduled no fundamental events for today except for the final vote in Senate. Unless the Congress sorts this issue out the fall of the rate may not even exceed the 50% Fibonacci retracement level at 1.1825.
Despite the fact that tax bill passed through the House, the currency exchange rate continued to move upwards and ended the day in the previously specified resistance zone located around the 1.1845 level. The further advance of Euro is possible, even though it is unlikely to exceed the 1.1860 mark, as this area represents location of the upper-boundary of a one-month long descending channel. A plunge below the monthly PP at 1.1806 is also doubtful, as it is additionally secured by the rising 55-, 100- and 200-hour SMAs. On the other hand, there is a need to take into account that there are scheduled no fundamental events for today except for the final vote in Senate. Unless the Congress sorts this issue out the fall of the rate may not even exceed the 50% Fibonacci retracement level at 1.1825.
The common European currency continued to rise against the Dollar in a tiny ascending channel. Despite release of improved housing data the pair managed to break through the upper boundary of a one-month long descending channel and end the day at the 61.8% Fibonacci retracement level located at 1.1887. The rising moving averages that are lying along the lower edge of the pattern are expected to support the further surge.
However, there is a need to take into account that supposed resistance zone located around the 1.1910 mark might lead to a fully-fledged rebound. If this scenario materializes it might be a sign confirming an existence of another larger ascending channel. In this regard it should be noticed that 51% of pending orders in 100-pip range are set to sell.