Euro stunned by strong support against U.S dollar.

The dollar rallied broadly on Thursday as a report showed the U.S. economy grew in the first quarter at a faster pace than previously estimated and as hawkish Federal Reserve comments boosted expectations for an interest rate increase later this year.

Dallas Fed President Richard Fisher said on Wednesday the the U.S. central bank could increase benchmark rates 'sooner rather than later' if inflation expectations worsen.

Demand for the greenback accelerated after the government said the U.S. economy grew at an upwardly revised 0.9 percent pace in the first quarter, slightly better than previously estimated.

The buying point is at 1.5463; based on a bounce on a strong support.

• Fibonacci 38.2% is the take profit at 1.5665
• Previous support is the stop loss at 1.5403

The selling point is at 1.5380; based on a break of a strong support level.

• Previous support is the take profit at 1.5295
• Fibonacci 23.6% is the stop loss at 1.5539

To strengthen our analysis; we use many other indicators, starting with MACD (Moving Averages convergence divergence); we notice the crossing of MACD line to the signal line and is pointing upwards. In order to find the power of the market, we use RSI (Relative Strength Index).With RSI; we can determine that the market is in a bullish direction.

The ROC oscillator is very important to understand the demand in the market and as we see on the graph is in a downtrend. The Stochastic oscillator breaks 80% line and continues to go lower.

* The following analysis is for information only; Finotec is not responsible for any decisions or misinterpretations based on the given text.