EUR/USD: European currency is still under pressure
European currency is still under pressure; investor interest to Euro has dropped due to rumours about probability of expansion of monetary incentive measures. The pair did not respond to yesterday’s negative data on the US GDP, which was below negative expectations. Today the pair continues to trade near the key support level of 1.3600. Weak data of retail sales with seasonal fluctuations in Germany has prevented the rise in the pair. Attention today shall be paid to important US news, including the data o=n personal expenses and Chicago consumer confidence index (PMI).
Support and resistance
In the medium-term European currency will remain under pressure. The decline in Euro will be halted by the weakening gin the USD, which will not receive positive momentum for the rise. Today, high volatility is unlikely; the pair will continue to trade in the narrow sideways channel. In case of negative American data the pair may undergo upward correction. In the future the pair may go down to the target level of 1.3520 (1.3470).
Support levels: 1.3600, 1.3520, 1.3470 and 1.3400.
Resistance levels: 1.3660, 1.3720, 1.3770, 1.3810, 1.3900, 1.3960 and 1.4000.
In the current situation it is advisable to place pending sell orders from the levels of 1.3660 and 1.3720 with take profit at the level of 1.3470 and stop-loss at 1.3750.
Analyst of LiteForex Investments Limited