Trading news

EUR/USD: downtrend is getting stronger

Current trend

As expected, European currency continues to decline against the USD, reaching support level of 1.3520. The decline in the pair was caused by poor data on consumer price index in Eurozone and construction output. The USD continues to strengthen. Producer price index in Germany became known today: the index in December has been below expectations, amounting 0.1%. In the afternoon, monthly report of Bundesbank will become known. Volatility is not expected to be high as it is a day off in the U.S. banks

Support and resistance

European currency can slightly regain losses; however in the medium-term the pair will continue downtrend. Key support level of 1.3580 has been broken down and the next target of the “bears” is 1.3400. The price will continue to move in the downward channel.

Levels of support: 1.3520, 1.3400 and 1.3300.

Levels of resistance: 1.3580, 1.3650, 1.3700 and 1.3830.

Trading tips

It is recommended to open short positions with profit taking at the level of 1.3300. Pending sell orders can be placed from the level of 1.3580, in view of insignificant correction.

 

Dmitry Likhachev
Analyst of LiteForex Group of Companies

Monday, 20 Jan, 2014 / 9:34

Source : http://www.liteforex.com/

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