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EUR/USD Forecast 09 July 2014

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EUR/USD chart 09 June 2014
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U.S. is preparing for great strengthening across the market

EUR/USD did not cause much interest lately, but everything can change next evening if the minutes of the last Fed meeting still produce some surprises.

Traders started to believe again in U.S. dollar, and if next time members of the FOMC will be more optimistic about the future prospects of national economy, it can cause a surge in demand for U.S. currency and push the pair below 1.3600 level with the immediate goal at 1.3550. The level of 1.3600 is appropriate for Put option buying with 3-4 hours expiration time for tomorrow.

EUR/USD is trading at 1.3600. Prospects for an earlier start to the Fed rate hikes and LTRO program launch from the ECB likely to show a predominance of decrease in pair, but firstly it must overcome the support area on $ 1.3560, which will open the way to 1.3500.

The level of 1.3560 is the second good level for Put option buying tomorrow. The nearest resistance is on 1.3640 area. Reasons for the growth of this currency pair are not visible.

EUR/USD currency pair traded in a narrow range in the last two days. This range are indicated by the levels of 1.3595 and 1.3620. However, focusing on the moving average location, EUR/USD is trading now in slightly overbought zone.

This makes the current price level even more attractive to buy a daily Put option on this currency pair for 09 of July expiry if the price achieves the level of 1.3600.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.

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