Current trend

Last week, Euro rose up to 1.0848 against the USD because of the weakening in the USD. Last Friday, US inflation data became known; it showed that consumer price index fell to 0.2% last month, while analysts expected it to be 0.3%. On annual basis this index was negative amounting to -0.1%.

As expected, ECB left monetary policy unchanged. The head of the European regulator said that quantitative easing program gives positive results; he also denied the rumors that QE program could be completed ahead of schedule.

Currently, the pair is consolidating in the range of 1.0730-1.0820. Today monthly economic report of the Central Bank of Germany will be released; however, the pair is likely to continue to move in the channel. Due to the fact that the “bulls” have taken profit, downward correction is possible.

Support and resistance

Support levels: 1.0735 (yesterday’s lows), 1.0642 (lows of 16 April), 1.0562 (bottom line of Bollinger bands).

Resistance levels: 1.0848 (yesterdays’ highs), 1.0954 (highs of 7 April), 1.1035 (highs of 6 April, upper line of Bollinger bands).

Trading tips

Short positions can be opened below the level of 1.0730 with the first target of 1.0630 and the next one of 1.0570. Buy positions are recommended from the level of 1.0850 with the targets of 1.0950 and 1.1030.

EUR/USD: general analysis

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