Yesterday, Euro had lost over 100 points against the USD because of the positive US data on the orders of durable goods. The index rose by 0.5%, which was by 0.3% higher than the forecast. The data for March was also revised, showing that the index increased up to 5.1% from the previous level of 4.7%.
It is expected that volatility will be moderate today; the market is in anticipation of the revised US quarterly GDP. The forecast for this index is -0.1%, which is by 0.3% lower than the previous level. If the forecast proves to be correct, it can have a negative impact on the USD.
Support and resistance
On the daily chart Moving Average lines with the periods 20 and 50 are above the current price level; they are directed downwards, indicating downtrend in Euro. In case of intersection of these lines, we will get a strong sell signal. MACD histogram is in the positive zone and its volumes are rapidly decreasing, which is also a sign of the negative trend for the pair.
The nearest support level is 1.0825, which will be followed by the next support of 1.0565 (lowest price level over the past two months). The nearest resistance level is 1.1130 (moving average with the period 50).
It is recommended to open sell positions at the level of 1.0850, take profit at 1.075 and stop-loss at the level of 1.0950.