The pick of the day is EUR/USD since it was Mr. Euro’s time to shine yesterday, after an impressive trade balance number and positive sentiment from German ZEW think-tank, led investors to jump back into the single currency despite the continued headwinds. The fate of the pair today will be in the hands of Ms. USA after FOMC minutes which are released at 2 pm EST.
On the technical side, the pair finally broke above the Ichimoku cloud and now approaching the hard-core resistance level in the 1.38 area. The daily RSI broke above a declining trend line in place since mid-December. A break above 1.38053 could open doors for more gains in EUR/USD with target levels at 1.389 and 1.4245.
On the other hand if the pair fails to break through this level, we could expect a fall down to one of the Fibonacci levels drawn through the general uptrend since June 2013 all the way to December. A downside break of the 23% Fibonacci level at 1.35678 could drag the pair down to the 1.34 and 1.32 areas.
Stay tuned for more updates and if you feel like you’re lost in translation with this report, come one over to InvestDiva.com and check out our straightforward and easy education program.