At the beginning of yesterday's trading session EUR/USD tried to develop Monday success, when on rally European currency reached zone of $ 1.2450-highs on March 26.
However, at $ 1.2474 the single European currency met strong resistance, and the dollar, respectively, gained support, after which the situation began to change dramatically-the players hastened to fix profits. On the fundamental front, these price actions coincided with the publication of news that the US and China are negotiating on settling trade contradictions. Of course, USD dollar received some support after the risk-on mode returned.
The pair moved to the decline and fell to the level of $ 1.2370. Here, the expected support was received and a rebound happened. As a result, Tuesday's trades ended at $ 1.2401.
What is important is that the price area above 1.2400 once again proved to be very viscous and difficult to pass. Only the passing of 1.2474 and the completion of trading above this mark may signal a further growth in the areas 1.2500-1.2520 and 1.2535-1.2554.
Today's trading for the European currency is negative. The closest support of $ 1.2385 was broken by the markets and the decline intensified after the release of positive figures for US GDP for the fourth quarter of 2017. The growth of US GDP for the fourth quarter was 2.9% instead of the expected 2.6%
A more substantial support zone is located in the region of $ 1.2340- $ 1.2350. We expect that at these levels the bulls will move into a counterattack and try to seize the initiative.
Trading recommendations - cautious longs from the zone $ 1.2340- $ 1.2350