EUR/USD: general analysis
Yesterday the price of EUR/USD continued to decline. The pair fell to the low of 14 months. Pressure on Euro was caused by the ECB’s decisions to reduce rates to the record lowest level and to launch new incentive programs
On the other hand, the pair EUR/USD is going down due to the strengthening in the USD. According to the report of Federal Reserve in San Francisco, US Fed can change interest rate sooner than expected.
Situation in Ukraine is also uncertain. An uneasy truce, which was achieved recently, has not brought positive changes. Experts believe that the ceasefire will be prolonged, as the parties have not reached agreement on a few key issues
Support and resistance
Resistance levels: 1.2957 (yesterday’s highs), 1.3000 (important psychological level), 1.3125 (Fibonacci retracement 23.6%), 1.3200 (important psychological level).
Support levels: 1.2858 (14-month lows), 1.2800 (important psychological level), 1.2754 (lows of 9 July 2013).
Short positions are recommended if the price breaks down the level of 1.2850. Short-term target is 1.2800, the main target is 1.2755.
Analyst of LiteForex Investments Limited