The long at EUR/USD remains - possibility for new positions

EUR / USD Our expectations: Rising trend. Correction to diagonal support (former resistance). Opportunity for long position with stop 1.206

Commentary: The EUR / USD currency pair had quite a volatile session yesterday. It traded close to 1.2200 for most of the day, then jumped above 1.2300 caused by the weak dollar just to drop below 1.2200 at the end of the session.

The pair fell to the bottom of 1.2165 from today at the start of the day, but buyers seem to have found new support in the face of 38.2% Fibonacci. This zone also coincides with the former resistance of the upward channel, which now plays the role of support and will attract even more purchases.

For the moment, the pair seems to be trading sideways looking for direction. We expect the ECB's spokesmen Weidmann and Coeure to speak at 10:15 today - this is considered a possible risk event for the euro.

Alternative scenario: If the price fails to keep above the diagonal support (former resistance) and re-closes inside the channel. A short-term correction up to the 1.2088 horizon can be expected.

Jr Trader Alexander Kumanov

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