EUR/USD Forecast: Ready To Challenge 1.1280 Resistance
Dollar's sell-off accelerates in Europe, after Central Banks stood pat on Wednesday. Both, the BOJ and the Fed, decided to maintain their economic policies unchanged, with the latest leaving doors open for an additional move, but overall suggesting that policy makers are in no rush to raise rates, and that they prefer to see more evidence of continued economic progress. There are no news scheduled for today in Europe, although ECB's Draghi is scheduled to speak later on the day, at the European Systemic Risk Board annual conference, in Frankfurt. The US macroeconomic calendar will be a bit more entertained, with weekly unemployment data, some housing figures, and the CB leading indicator.
The EUR/USD pair soared to the current 1.1240/50 region, looking intraday bullish, as in the 4 hours chart, technical indicators head sharply higher within positive territory, whilst the price has advanced above all of its moving averages for the first time this week. The pair has a daily descendant trend line coming from 1.1615, this year high around the 1.1280 level, where the price stalled its advance last week, and a critical resistance, as a break below it should fuel the rally, up to 1.1330 first, and 1.1365 if it advances beyond this last.
Pullbacks towards the 1.1200 level should attract buying interest to keep the bullish trend alive, as a break below it would see the price moving back towards the 1.1150/60 price zone.