Current trend

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.

Trading tips

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

BuySellSpread
1.174911.174721

Scenario

TimeframeWeekly
RecommendationsSELL
Entry Point1.1989
Take Profit1.1820, 1.2060
Stop Loss1.2060
Support levels1.1570, 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
EUR/USD: after the correction, the pair will fall

The material published on this page is produced by the Claws&Horns Company and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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