After a significant decrease of EUR against USD at the end of April, at the beginning of May, the pair EUR/USD entered the upward correction. The decrease was due to the rapid growth of the investment demand on USD and poor macroeconomic data of the main EU sectors. Since the middle of the last trading week, the instrument has restored part of the loss and has moved by more than 150 points in three trading days, supported by strong German Industrial Production data.
The traders are focused on the preliminary statistics of Q1 German and EU economic growth rate. The key EU indices and inflation data can affect the dynamic, too.
Support and resistance
In the middle term, the pair can enter the narrowing sideways consolidation and fall to the new local lows. The alternative is a consolidation of the price above the level of 1.2000 and the maintenance of the upward momentum to the levels of 1.2100, 1.2150. In the long term, the trend stays downwards, the possibility of the movement to the minimum of the end of the last year at the levels of 1.1600, 1.1570 is high.
On the daily chart and higher, the technical indicators reflect the maintenance of the downward movement, MACD keeps a high volume of short positions, and Bollinger Bands are pointed downwards.
Resistance levels: 1.1980, 1.2000, 1.2030, 1.2075, 1.2100, 1.1220, 1.2150, 1.2175.
Support levels: 1.1950, 1.1900, 1.1880, 1.1820, 1.1800, 1.1775, 1.1730, 1.1600, 1.1570.
It is relevant to increase the volume of short positions at the current level with the target at 1.1820, in the long term – with the target at 1.1600 and stop loss 1.2060.
Euro vs US Dollar
|Take Profit||1.1820, 1.2060|
|Support levels||1.1570, 1.1600, 1.1730, 1.1775, 1.1800, 1.1820, 1.1880, 1.1900, 1.1980, 1.2000, 1.2030, 1.2075, 1.2100, 1.1220, 1.2150, 1.2175|
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