Current trend
Yesterday, EUR/USD rate has slightly dropped. The pair was under pressure from European news. Management of the Central Bank of Germany said that they support new measures of easing monetary policy, introduced by the ECB. ZEW sentiment index in Germany fell to the level of 33.1 points in May against the previous level of 43 points, which has not been encouraging. Even negative US data was not able to provide support to the pair EUR/USD. Retail sales in the USA rose only by 0.1% in April, while a month earlier the rise amounted to 1.5%.
Today investors wait for the data on industrial output in Europe. Experts predict that this index will decline, which can put pressure on the pair EUR/USD.
Support and resistance
Support levels: 1.3685, 1.3640 and 1.3590.
Resistance levels: 1.3735, 1.3770, 1.3795 and 1.3835.
Trading tips
On the four-hour chart Bollinger bands are directed downwards, indicating further decline. MACD histogram is below the zero line; its volumes are decreasing; however it is too early to expect formation of the upward movement.
The most feasible scenario is slow decline in price to the levels of 1.3685 and 1.3645. Sell positions are recommended at the current price with the targets of 1.3685-1.3645.
Vadim Smarzh
Analyst of LiteForex Investments Limited
