Current trend

Last week, the European currency fell against the US Dollar amid numerous macroeconomic releases.

On Friday, the USD was supported by statistics on US GDP for the fourth quarter 2015. According to preliminary data, US economic growth was up by 1.0% that exceeded both the forecast and the growth in the previous quarter when the indicator came in at 0.7%. Personal income and spending increased by 0.5% in January that was above analysts’ expectations as well.

At the same time, market participants were disappointed with statistics on the eurozone. In particular, the growth rate of Germany’s consumer price index for February did not confirm the forecast.

Support and resistance

Bollinger Bands indicator on the daily chart is directed down while the price range is widening gradually. MACD is declining and keeping a sell signal. The indicator has fallen below the zero line. Stochastic is near the border of the oversold zone and trying to turn up indicating the possibility of an upward correction in the short term.

The indicators recommend waiting for clearer trading signals before placing new orders.

Support levels: 1.0900, 1.0867, 1.0834, 1.0800 (end of January level), 1.0777 (21 January low).

Resistance levels: 1.0939, 1.0967, 1.1000 (strong psychological level), 1.1067, 1.1100, 1.1160, 1.1200 (15 February level), 1.1246.

Trading tips

Short positions can be opened at the current level with the target at 1.0865 and stop-loss at 1.0990. Validity – 2-3 days.

Long positions can be opened after the breakout of the level of 1.0990 with the target at 1.1080 and stop-loss at 1.0975. Validity – 2-3 days.

EUR/USD: European currency remains under pressure

EUR/USD: European currency remains under pressure

The material published on this page is produced by LiteForex and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.

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