EUR/USD: review and forecast
At the previous trading session Euro has slightly grown. It seems that the pair found support at the level of 1.3614 and the “bears” have not been able to go below this level so far. Yesterday European currency was supported by positive German macro-economic data on consumer confidence index in June, as per Gfk. The index remained at the previous high level of 8.5 points, as had been expected by the experts.
Today investors are waiting for the speech of Mario Draghi, the head of the European Central Bank that may affect the rate of EUR/USD. Market participants will also pay attention to business activity index in the manufacturing sector in Richmond, US for May and business activity index in the US service sector for May.
Support and resistance
On the four-hour chart Bollinger bands are diverging, which confirms that upward movement will continue. MACD histogram is in the negative zone; however its volumes are rapidly decreasing, indicating the rise in rate. Both indicators demonstrate weak signals of the rise in price; however it is too early to expect the formation of the upward trend.
Resistance levels: 1.3668, 1.3690 and 1.3722.
Support levels: 1.3640, 1.3614, 1.3560 and 1.3530.
Orders to buy can be placed after breakdown of the level of 1.3668 with the targets of 1.3690 and 1.3722. Given general downtrend it is likely that the price will slowly go down to the level of 1.3614 and may even reach the level of 1.3560.
Analyst of LiteForex Investments Limited