Current trend
At the beginning of this week the pair EUR/USD traded in the narrow range of 1.3700-1.3630. Even strong data on index of business climate in Germany could not strengthen Euro. For several days the pair has been growing in anticipation of the US Fed decision on key interest rates and volume of stimulus programs. Yesterday US President highlighted significant recovery of the country’s economy as well as considerable decline in unemployment rate.
Investment attractiveness of the USA is increasing; the USD rate is also growing and macro-economic statistics shows good results. Investors expect that optimism of President Obama will be supported by Federal Reserve leaders and at today’s meeting the decision to reduce volume of assert purchase will be adopted. This fact will give additional boost for the rise in the USD.
Support and resistance
It is likely that the pair will drop to support level of 1.3420 today. Later, the American currency will continue to strengthen and demand for the USD will increase.
Support levels: 1.3500, 1.3420 and 1.3300.
Resistance levels: 1.3700, 1.3800 and 1.3830.
Trading tips
It makes sense to place buy orders with profit taking at the level of 1.3420.
Dmitry Likhachev
Analyst of LiteForex Group of Companies
