Bullish USD reaches a near 12-year high against EUR on Tuesday.
USD is gaining its strength on the back of expectations the Federal Reserve may raise interest rates in June 2015.
"It is all about the Fed now," said Aurelija Augulyte senior FX strategist at Nordea in Helsinki. "The ECB (bond buying) bias has now been fully digested, but what the market is now trying to do is price in earlier Fed rate hikes."
In contrast, The European Central Bank, remains deeply committed to monetary easing, launching its 1 trillion euro bond buying programme on Monday, driving euro zone debt yields lower to weigh on the euro. The common currency is also weakened by continuing ambiguity over the Greece’s debt.
EURUSD currently trading as low as $1.0744, its lowest since September 2003.
EURUSD - Day Trading Strategies
Bearish scenario: Short positions below the daily pivot point 1.0855$ with targets at 1.0810$ next 1.0780$ in extension.
Alternatively, Bullish scenario: Long positions above the daily pivot point 1.0855$ with targets at 1.0885$ next 1.0935$ in extension.
EURUSD - Daily Chart Support and Resistance levels
Resistance: 1.1115, 1.1270, 1.1445, 1.1500, 1.1540, 1.1650, 1.1680
Support: 1.0780, 1.0720, 1.0685
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