EUR/USD: breakdown of last year lows will push the pair down

EUR/USD: breakdown of last year lows will push the pair down

Current trend

European currency continues to fall due to the negative stats on EU economic system. The last nail in the coffin was IFO indices, which were even lower than predicted. The pair EUR/USD has broken down the support level of 1.2820 and reached last year lows, but then was corrected to the level of 1.2750.
Today investors are waiting for the US GDP data and ССI publications. However, even weak US data won't help Euro.

Support and resistance

The decrease under lows of November 2012 will allow the pair to go further down to the levels of 1.2400, 1.2300. The latter doesn't seem so incredible now. Some experts predict that in 2015 one Euro will cost $1.
Support levels : 1.2700, 1.2660, 1.2500, 1.2300, 1.2200.
Resistance levels: 1.2750, 1.2820, 1.2910, 1.3000, 1.3030, 1.3100, 1.3190.

Trading tips

It is hard to tell whether the pair breaks down support levels of turn up. Pending sell orders should be placed below 1.2660 with targets at 1.2300. Long trades can also be open with short stop-loss at 1.2660 and take-profit at 1.3000.



Dmitry Likhachev
Analyst of LiteForex Investments Limited

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