The European currency declines slightly at the opening of the European session. The nearest important level of support is at 1.1596 or 2/8 Murray. In the event of a breakdown, the next target for the “bears” will be 1.1535.
The German IFO business climate index reached 101.8 points, which is a sign of weak economic growth. It is worth noting that this indicator has been decreasing for a month now. Moreover, the situation may worsen if the trade war between the US and the EU begins to escalate, and more goods will fall under the policy of protectionism. Thus, only in 2017, the EU exported about 1.3 million cars to the US, and if Washington introduces a 25% duty on the import of all cars, it could hit hard the German economy. According to preliminary estimates of economists, trade wars can reduce world GDP by more than 2%. The deterioration of the conflict may provoke the ECB to further weaken the monetary policy, making the prices of goods more attractive due to the depreciation of the euro.
Support and resistance
The Stochastic is at the level of 65 points and does not give signals to open positions. You can open short positions after the breakdown of the local minimum (1.1615).
Resistance levels: 1.1657, 1.1690.
Support levels: 1.1615, 1.1558.
Short positions can be opened after a breakdown of the local minimum 1.1615 with a stop loss at 1.1650 and a take profit at 1.1558.
Euro vs US Dollar
|Support levels||1.1558, 1.1615, 1.1657, 1.1690|
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.