On Wednesday, the pair EUR/USD was supported by German ten-year bonds, as their yield grew by 3.0 basis points to 0.984%. The strengthening of the Euro is also supported by the news that Greece and Germany are close to reaching an agreement and that the ECB has increased the volume of liquidity for Greek banks from 80.7 tо 83.0 billion euro. The pair is also under the pressure from market expectations of the interest rate increase in the US and monetary policy easing in the Eurozone.
Today’s news includes the data on the US retail sales for May due at 15:30 (GMT+3). Forecasts predict that the figure should show an increase of 1.1% against 0% for April. If the forecast proves right or the actual figure comes out even better, the USD will grow against all major currencies. Later today, between 16:30 and 20:00 (GMT+3), more US news releases are coming up. As high volatility is expected for the pair, be careful when making trading decisions.
Support and resistance
On the daily chart, the pair is moving within the upward correction channel (green color) and is now at 23.6% Fibonacci level (1.1290). From the top, its movement is restricted by the resistance levels of 1.1440 (ЕМА144), 1.1680 (ЕМА200), 1.1785 (Fibonacci 38.2%). On the daily chart, Stochastic and OsMA are in the buy zone but about to reverse and move to the sell zone. On the four-hour chart Stochastic and OsMA give sell signals.
Support levels: 1.1200, 1.1125, 1.1090, 1.0980 and 1.0860.
Resistance levels: 1.1350, 1.1440, 1.1680 and 1.1785.
It is recommended to open short positions at the current price and from the levels of 1.1350, 1.1380 and 1.1440 with targets at 1.1200, 1.1125, 1.1100, 1.1090 and 1.1000. After breakout of the 1.1500 level, it would make sense to open long positions with targets at 1.1680 and 1.1785.