Trading news

EUR/USD: general analysis

Current trend 

Unified European currency continues to drop in price. The decline is likely to continue and Euro will be in the red zone at the end of the week. Key level of the bears is 1.3523, the lower limit of the trading channel on the weekly chart.

Yesterday European Central Bank decided to leave interest rate at the previous level. Mario Draghi said that despite gradual economic recovery, unemployment rate is still high and additional financial are required in order to rectify situation. Current rate of unemployment is Eurozone is 24%. In addition, Mario Draghi noted that ECB is ready to introduce  measures in case of the signs of deflation in EU. Experts believe that in order to increase inflation bank can use additional liquidity pumping money into financial sector of economy. Exchange rate of Euro is a problem of ECB.  Too high exchange rate reduces exports from EU countries but allows to economize on energy, buying gas at a lower price.

Levels of support and resistance

The nearest resistance level is 1.3695 – lower limit of the trading channel.

Support level is 1.3735 – upper limit of the trading channel.

Trading tips 

It is recommended to open short positions after breakdown of the level of 1.3695 with stop loss at 1.3720 and a target of 1.3540.

 

Dmitry Agurbash,

Analyst of LiteForex Group of Companies

Friday, 04 Apr, 2014 / 9:09

Source : http://www.liteforex.com/

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