EUR against USD has recovered significantly after a fall by 900 points over the last month and a half.
At the end of May, the pair approached a key support level, after which the oversold European currency began to grow on the increase in demand and a favorable fundamental background. Later, the instrument went into the consolidation stage, but yesterday it overcame a strong resistance level, moving into a longer correction. Today, the pair reached the key resistance level of 1.1830 and consolidated below. Data on the growth rate of the Eurozone failed to support EUR and give impetus to the level taking, confirming the forecast.
Today, one should pay attention to data on the US labor market, and tomorrow - on industrial production in Germany.
Support and resistance
During the week, there will be no key fundamental catalysts, which means a high probability of securing the pair in the side channel below 1.1830. Later, it is possible to end the corrective upward movement and resume the downward trend with targets at 1.1665, 1.1600, 1.1510. The long-term trend remains descending: USD has only paused, and the prospect of its strengthening is very high. If the key resistance levels (1.1830, 1.1900) are taken, one can safely say that the trend has changed and in the medium term growth is more likely
Technical indicators on D1 chart confirm the main forecast for the downward movement: MACD indicates the preservation of the high volume of short positions, and Bollinger Bands are pointing downwards.
Support levels: 1.1800, 1.1775, 1.1730, 1.1690, 1.1665, 1.1600, 1.1575, 1.1510, 1.1430.
Resistance levels: 1.1830, 1.1880, 1.1900, 1.1950, 1.2000, 1.2070.
Short positions may be opened from the current level with targets at 1.1665, 1.1600, 1.1510 and stop-loss at 1.1930.
Euro vs US Dollar
|Take Profit||1.1665, 1.1600, 1.1510|
|Support levels||1.1430, 1.1510, 1.1575, 1.1600, 1.1665, 1.1690, 1.1730, 1.1775, 1.1800, 1.1830, 1.1880, 1.1900, 1.1950, 1.2000, 1.2070|
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