On Tuesday, USD index fell, causing Euro to increase above 1.1800 and reach a multiday high of 1.1840. Currently, the market is waiting for the outcome of the US policy meeting to find a signal about when the Fed will begin to reduce the scale of asset purchases. The European news, show that the increased in inflation will probably continue due to the spread of delta virus variants and the speed of vaccination. There is also the factor that there maybe a political bubble surrounding the EU Recovery Fund and the election situation in Germany.
From a technical point of view, Euro’s daily candle is bullish for 3 consecutive days. After a huge drop, the increase in EURUSD will face resistance. H4 graph shows that the candle broke through the 120-day moving average, BOLL band turned upwatds, and the MACD volume increased, which is a positive signal for the bulls. Overall prioritise operation on the fluctuation zone. The deciding point whether to buy or sell is near 1.1850.
Resistance：1.1850-1.1880-1.1910
Support：1.1800-1.1750-1.1700
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