On Thursday the pair received strong support from positive statistics on business activity index in Eurozone. The index was above the most optimistic forecast and the pair sharply went up , reaching the key resistance level of 1.3700. Although not many important news releases from the US and Europe are scheduled for today, however attention shall be paid to the speech of ECB chairman, Mario Draghi. It is likely that the pair will continue to consolidate in the sideways channel.
In the medium-terms the pair will continue to strengthen. Next Monday German LFO will become known, if the data confirms positive forecast, the pair will continue to grow to the local highs of 1.3800 and 1.3830, and after that will return to support level of 1.3500.
Support and resistance
Support levels: 1.3650, 1.3500, 1.3420 and 1.3300.
Resistance levels: 1.3700, 1.3800 and 1.3830.
It is advisable to place pending orders to sell near 1.3800-1.3830 with profit taking at the level of 1.3500.
Analyst of LiteForex Group of Companies