On Monday the pair EUR/USD traded in the range of 1.1449-1.1228, losing over 100 points compared with the highs of the last week. At the moment Euro continues to drop in price against the American currency. The price is at the level of 1.1305.
It is expected that today, market volatility will be moderate. Among macro-economic statistics, which can affect movement in the pair will be ZEW sentiment index in the business sector of Germany. According to preliminary forecast the index will decline compared the previous value, and given that the German economy is the leading in the EU, low index will not help the rise in Euro.
Support and resistance
On the four-hour chart Moving Average lines with the periods 20 and 50 are above the current price level, which confirms existing downtrend. MACD histogram is in the positive zone; its volumes are decreasing, which is also a confirmation of the downtrend.
Support levels: 1.1217 (moving average with the period 100) and 1.1129 (last week’s lows). The nearest support level is the moving average line with the period 50 (1.1322). Strong resistance is the highs of February at the level of 1.1467.
It is recommended to open short positions from the level of 1.1300 with the exit order at 1.1220–1.1200. As an alternative scenario it is possible to open buy positions below the level of 1.1322 with the target of 1.1420-1.1460.