Current trend
Throughout this week the USD has weekend against the European currency. However, reaching the lows of 1.3670, the pair started to go up. Yesterday the pair traded in the narrow range although the data on German exports was below the forecast. The release of the minutes of the US FOMC meeting triggered the rise in the pair. The pair EUR/USD had reached the level of 1.3870 and then shifted to correction. High exchange rate of Euro has negative impact on German economy. The rise in the exchange rate makes German products uncompetitive in the market, which has been reflected in the latest export data. If this tendency continues, ECB will have to stimulate economy with the help of additional infusions of cash.
Support and resistance
The nearest resistance level is 1.3850, which coincides with the level of 23.6% Fibonacci. Next resistance level is 1.3870 — the main target of the bulls. Support levels are1.3830, 1.3815 and 1.3800.
Trading tips
In the current situation correction is possible. Short positions can be opened at the current price with the target of 1.3780. At the same level it is also recommended to place limit buy orders.
Ilya Lashenko
Analyst of LiteForex Group of Companies
