Current trend
On the chart H4 the Unified European currency is trading near the moving average with the period 200. If Euro falls further down in the near future, it will increase pressure and decline can reach the level of 1.3695. Fundamental data are ambiguous. Sentiment index in the business sector of Germany suddenly fell to 110.7 points. Economists fear that European economy can run into deflation. They also believe that ECB shall adopt additional measures to avert such possibility.
The news that unemployment rate in France continues to increase also has a negative impact on Euro. Number of unemployed has grown by 0.9% or 3.34 million people. According to statistics people, who are over 50 are in the group of risk. The rise in this age group was 12%.
The following US news will be released today: volume of retail sales, GDP and number of initial claims for unemployment benefits. The rise in indices above expectations will increase pressure on Euro.
Support and resistance
The nearest resistance level is the upper limit of the trading channel (1.3844). Support level is the moving average with the period 200 (1.3760).
Trading tips
Short positions are recommended after breakdown of the level of 1.3760 with stop-loss at 1.3780 and a target of 1.3695.
Dmitry Agurbash
Analysts of LiteForex Group of Companies
