EUR / USD: Euro is now in the spotlight

As follows from published last week
Protocols of the ECB of 20 July, the ECB Governing Council is alarmed current
the power of the euro.

Euro since the beginning of the year scored 12% against the dollar. thanks
conducted by the ECB extra loose monetary policy, recovery
the euro area economy is gaining momentum, even though inflation is still kept below
target level (below 2.0%).

At the same time, the dollar has declined by about 7% against a basket
of 16 currencies. His losses were due to the forecast that the interest
US interest rates will rise gradually, as well as internal political problems
in the United States.

Today, investors
will analyze the performance of heads of central banks, including the
Fed Chairman Janet Yellen and the President of the European Central Bank
Mario Draghi, in search of clues to the future plans to tighten
monetary policy.

It is likely that the ECB will not hurry with tightening
policy is expected, many market participants, putting on the euro. Mario
Draghi will try not to disturb the markets and, most likely, would vote in favor of
extending the QE program and show concern about the high cost of the euro.

By Janet Yellen, on the contrary, we can expect signals
on another rate hike this year.

If all that happens, the dollar will rise sharply in the
the foreign exchange market, including and in the pair EUR / USD.

The dollar traded little changed in Asian
session. The dollar index WSJ, reflecting the dollar's value against a basket of 16
currencies, grew by 0.1% to 86.18.

It seems that market participants took a wait
the eve of the speech of the Fed (14:00 GMT) and ECB (19:00 GMT). In this regard,
This volatility in the currency market can increase dramatically in a short
intervals, especially during the performances Mario Dragi, and Janet Yellen.

*) Advanced fundamental
analysis is presented on the company website Tifia Forex Broker in
section tifia.com/analytics

If by Mario Draghi, or Janet Yellen today follow
certain statements on monetary policy, it is likely
Breakthrough range. EUR / USD or
resume growth within the rising channel on the daily and weekly charts,
or burst the support level 1.1720 (EMA144 on 4-hour chart), and go
to the level of 1.1620. level 1.1620 breakout increases the risk of return in EUR / USD downward global trend.

In the case of breakdown of the local resistance level 1.1835
EUR / USD will go to 1.1890 resistance levels
(Year highs), 1.1950, 1.2050, 1.2180 (Fibonacci level 50%).

Support levels: 1.1780, 1.1720, 1.1670,
1.1620

Resistance Levels:
1.1835, 1.1890, 1.1910, 1.1950, 1.2050, 1.2180

Business scenario

Sell
Stop 1.1760. Stop-Loss 1.1840. Take-Profit 1.1720, 1.1670, 1.1620

buy Stop
1.1840. Stop-Loss 1.1760. Take- Profit
1.1890, 1.2000, 1.2050, 1.2100, 1.2180

*) Relevant and detailed
analytics and news on the forex market, see the company's website tifia.com Tifia Forex Broker