Although the European currency remains in the upward channel against US dollar , the downward trend remains. After considerable growth of EUR against USD in March the pair radically changed its direction and has been trading in the downward tendency for the last two weeks. At the beginning of this week EUR reached the key of 1.0570 against dollar and failing to break through it moved to the upward correction stage. The upward movement was caused by the fixation of short positions around the key and the lower border of the upward range, while the fundamental background remained negative. Today's releases on EU industrial output were weak. No in the pair is expected by the end of the day due to the absence of important US releases. Utmost attention in the current trading week should be paid to the indexes of key EU economies, labor market, retail sales, and US consumer price index.
Support and resistance
On D1 chart technical indicators don't give a clear signal. On the weekly chart indicates growing volumes of short positions, the price broke through the middle line of , and the lower line shows a medium term target of 1.0450.
Support levels: 1.0570, 1.0495, 1.0450, 1.0400, 1.0350, 1.0300, 1.0150, 1.0000.
Resistance levels: 1.0685, 1.0760, 1.0830, 1.0905, 1.1000.
Short positions may be opened from the current level and key resistance levels of 1.0635, 1.0685 with targets at 1.0450, 1.0400, 1.0350. In view of possible return of the pair to the lower border of the channel and breaking through it.
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