At the trading session on Thursday the USD slightly strengthened against the Euro amid positive data on the US retail sales, which increased by 1%. Nevertheless, the Euro is definitely in the positive trend. Since the beginning of the month the price has grown by almost 50 points and the moment the pair is traded at the level of 1.1230.
Among Friday’s macro-economic news, which can affect movement in the pair, will the US producer price index (15:30 GMT +3). According to the preliminary forecast this index will drop by 0.3%, which can have a negative impact on the American currency.
Support and resistance
On the four-hour chart Moving Average lines with the periods 20, 50 and 100 are horizontal. The pair is likely to continue trading in the sideways channel of 1.1286–1.1180.
Support levels are the local lows of 1.1223 and 1.1183. The nearest resistance level is the moving average line with the period of 20 (1.1286). Next resistance level will be 1.1386 (the highs of this month).
It is recommended to open sell positions after consolidation of the price below the level of 1.1220; take profit can be placed at the level of 1.1180 and stop-loss at 1.1280.
As an alternative scenario it is possible to open long positions with the entry points at 1.1286, take profit at 1.1380 and stop-loss at 1.1180.