Trading news

EUR/USD: Euro is regaining losses

Current trend

This week the currency pair EUR/USD has traded in the ascending channel, regaining slowly after the decision of the ECB to lower interest rate to 0.25%. This measure has led to significant weakening in European currency; however the decline in inflation in Europe encourages recovery of Euro. Consumer price index in Eurozone for October will become known today; according to the forecast the index will fall to 7%, which can trigger new surge of growth in the pair EUR/USD.

Support and resistance

At the moment the pair is trading near the lower limit of the ascending channel. It is expected that the price will go up to resistance levels of 1.3485 and 1.3530 in the near future. However, it is also possible that the price can reach the lower limit of the channel at the level of 1.3435 (moving average of “Bollinger bands” indicator) and from this level it will reverse upward.

On the four-hour chart technical indicators give mixed signals. Bollinger bands are directed upward. MACD histogram has moved to the overbought zone. Stochastic lines can cross each other in the near future and reverse downward, forming a sell signal.

Trading tips

In the current situation it is advisable to place long positions with profit taking near 1.3530.

 

Dmitriy Zolotov
Analyst of LiteForex Group of Companies

 

Friday, 15 Nov, 2013 / 12:15

Source : https://www.liteforex.com/

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