Current trend
Unified European currency continues to trade in the sideways channel. If in the next few days the pair manages to overcome the level of 1.3778, the decline may reach the level of 1.3650. In the absence of important economic news trading volumes can be low, which will make it difficult for market participants to determine trend direction.
Yesterday consumer confidence index of France was released, which remained unchanged at the level of 94 points against analysts’ forecast of growth up to 95 points. However, French economy is recovering due to reduction of unemployment rate and efficient measures taken by French government. According to preliminary estimates economic growth this year may increase by 0.9%. It is worth noting that European Commission has revised GDP forecast of Eurozone for 2014 into positive. Experts expect that growth will amount to 1.2%, while unemployment rate will fall to 12%.
Support and resistance
The nearest resistance level is at the upper limit of the trading channel (1.3778). Support level is the moving average with the period 200 (1.3650).
Trading tips
It is recommended to open long positions after breakdown of the level of 1.3778 with stop-loss at 1.3750 and a target of 1.3880.
Dmitry Agurbash
Analyst of LiteForex Group of Companies
