Technical analysis and trading recommendation of EUR/USD for March 25, 2015 Market Analysis Review

FRENCH:

Flash France Manufacturing PMI rose to a 2-month high of 48.2 (47.6 in February), Flash France Services Activity Index fell to a 2-month low of 52.8 (53.4 in February), .

GERMANY:

Flash Germany Manufacturing PMI hit a 8-month high of 52.4 (51.1 in February). Flash Germany Services Activity Index clinbed to a 6-month high of 55.3 (54.7 in February).

EUROZONE:

Flash Eurozone Manufacturing PMI is at 51.9 (51.0 in February). That is a 10-month high.

Flash Eurozone Services PMI Activity Index(2) is at 54.3 (53.7 in February). That is a 46-month high.

The euro was pushed above 1.10. This may be the initial sign of the euro zone economy is achieving momentum.

Upcoming data:

Today, traders eye on thr German Ifo business climate. From November 2014 onwards, the data printed an uptick. In February, data were weaker than expected. Now, we expect an uptick again.

Technical view:

The euro extended its pullback story yesterday as well, but at the end of the US session bulls gave up. Finally, the currency erased its intraday gains and closed with losses. Now, the euro is getting stronger. The main reason behind the sharp pullback is the US dollar is weaker after the FOMC meeting. The pair managed to hold 20Dsma at the yesterday's session. Today, at the early Asian session, the euro is trading lower against the greenback. USD rebounds against the euro and pair is trading below 1.1000. The intraday trend turns to bearish, based on hourly moving averages. Intraday resistance is seen at 1.0953 and support is likely to be found at 1.0890. We recommend fresh selling below 1.0880 with targets at 1.0770, 1.0750, and 1.0690. An intraday week view remains at buy with sl 1.0770. This is based on a purely technical view. However, I think the pair is likely to close above 1.1045 and bears will try to regain the control. Hopefully, bulls' honeymoon is over. A daily close below 1.0770 shows that bulls are losing grip.

Bulls must try to close above 1.1045

Bears must try to close below 1.0768.

The above levels on closing basis, can change the current change. Until 250 pips trading range will play a role.

Weekly support is seen at 1.0768 and 1.0700. Bulls will have an upper hand until the pair closes above 1.0768, but limited upside.

Trade: Selling below 1.0880

Key technical levels of the euro against USD/JPY/CAD/GBP and AUD

EUR/USD-Weekly mode favors buying with sl 1.0768. Intraday turned favors to bears

EUR/JPY- Weekly mode favors buying with sl 129.67. Intraday turned favors to bears

EUR/CAD. Weekly mode favors buying with sl 1.3600 with a likely target at 1.3800. Double top formation at 1.3746

EUR/GBP. Weekly mode favors buying with sl 0.7250 with a likely target at 0.7430 (buying was advised on Monday above 0.7305).

EUR/AUD. Fresh selling below 1.3820.

The above analysis is based on the h4 chart. We will re-analyze if the weekly trend changes. The euro has been trading like a mirror image against USD & JPY.

The material has been provided by InstaForex Company - www.instaforex.com



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