EUR/USD: general analysis
Once again the pair EUR/USD has pushed off from the local lows of 1.3448 and rushed to resistance level of 1.3500. The price on the hourly chart has crossed Moving Average with period 50, confirming a chance of further growth.
Fundamental indicators are mixed. Due to weak macro-economic indices in EU, soft monetary policy will be continued, especially because inflation is below 2%. According to the head of ECB, European economy is slowly coming out of the debt crisis, however in order to restore confidence in the banking system it is necessary to conduct stress-tests for banks. Integration of the banking system will also help to reduce the difference in interest rates within EU.
Important data, scheduled for the release today is: sales index in EU and industrial orders in Germany. If statistics meets favourable forecasts, Euro shall strengthen.
Support and resistance
The nearest resistance level on the daily chart is 1.3500. Support to the price is provided by the level of 1.3448.
It is recommended to open long positions after breakdown of the level of 1.3515 with the target of 1.3630 and stop-loss orders near 1.3490.
Analysts of LiteForex Group of Companies