EUR/USD KEEPS CONSOLIDATING BEFORE A STRONG MOVE

The EUR/USD price is consolidating near the upper limit of the descending channel. Investors are waiting for new stimulus to open positions for the beginning of the trading week. The course of trading today will be influenced by the data from the German Ifo business climate index at 08:00 GMT, durable goods orders in the US at 12:30 GMT and the speech of ECB President Mario Draghi at 17:30 GMT. We should note that investors are closely monitoring the words of ECB’s officials in anticipation of new hints concerning possible cuts to the asset purchasing programme or normalisation of interest rates in the Eurozone. Activity of traders today may be restrained due to the expected speech of the Fed’s chairwoman Janet Yellen tomorrow.

For the EUR/USD  to continue its upward movement, quotes need to gain a foothold beyond the upper limit of the channel and strong resistance at 1.1200. In this case, the immediate target levels will be 1.1230 and 1.1280. We should note that the MACD signal line on the 15-minite chart has crossed the zero level and that may possibly soon indicate the start of a descending correction to 1.1160; in which cast the following targets will be 1.1100 and 1.1020.