At the end of last week, the European currency declined slightly against the Japanese yen amid the recovering demand for the US dollar (after the devaluation of the Yuan).
Thus, EU preliminary Q2 GDP grew by 0.3%, 0.1% less than the forecast and the previous value. Consumer Price Index in June declined by 0.6% as it was expected, while Core Consumer Price Index accelerated from 0.9% to 1.0% that also fits the forecast.
Support and resistance
Bollinger bands on the daily chart keeps steady "bullish" dynamics. The price range is widening more slowly due to the downward dynamics for last two days. Currently, the indicator is giving a "bearish" signal, as the price left the upper border of the range. During the correction, short positions are recommended.
MACD is turning down, forming a sell signal (the histogram is below the signal line). The indicator recommends sell orders in the short run.
Stochastic is leaving the overbought zone that may be considered as a good signal to place sell orders in the short run.
Support levels: 137.79 (the nearest mark), 137.34, 137.00 (11 August mark), 136.43, 135.92, 135.53, 135.00 (5 August local low) и 134.32 (17 July low).
Resistance levels: 138.12, 138.50, 138.86 (12 August current high) и 139.16 (24 June high).
Open long positions when the price rebounds from 137.34 (with appropriate indicators signals). Set take-profit at 138.12, 138.50 and stop-loss no further than 136.43.
If the downward correction develops, open short positions when the price breaks down 137.00. Set take-profit at 136.00, 135.53 and stop-loss at 137.79.