Current trend
On the chart H4 Unified European currency is trading near the moving average with the period 200. Last week the pair had tried to test this level several times, but had to roll back. If the level of 1.3807 is broken down, Euro is likely to continue the rise.
The data from EUROSTAT shows that inflation rate in EU continues to decline. The price growth has not exceeded 1%, while the key level is set by ECB at 2%. European regulator will have to introduce additional measures to overcome deflation.
It became known recently that Greek parliament has again approved anti-crisis reforms in order to receive financing of 8 billion euro. Experts believe that reforms approved by parliament can completely destroy local manufactures by introducing cheap imported products. Moreover, the country will lose two largest assets- port and public railways, which shall be privatized in the near future.
Unemployment rate in EU for February will become known today; according to preliminary estimates, the rate shall remain unchanged at the level of 12%.
Levels of support and resistance
The nearest resistance level is the moving average with the period 200 (1.3807). Support level is the lower limit of the trading channel (1.3704).
Trading tips
It is recommended to open long positions after breakdown of the level of 1.3807 with stop-loss at 1.3780 and a target of 1.3920.
Dmitry Agurbash
Analyst of LiteForex Group of Companies
