Current trend
The Unified European currency had started this week with a slight upward gap but later fell to Friday’s level of 1.3873. Currently, the main obstacle for the upward movement in price is Murray level of 8/8, which coincides with the level of 1.3916. If this level is broken down, next resistance level will be at the level of 1.4000.
Euro is under pressure from positive US statistics. The data released last Friday showed that unemployment rate in the USA fell to 6.3% against the previous value of 6.7%. Decline in unemployment rate is associated with the rise of new jobs created outside agricultural sector by 288 thousand. Analysts do not doubt that US Fed will continue to reduce volume of quantitative easing due to positive macroeconomic statistics.
On the other hand, employment situation in EU is not so good. In 28 EU countries unemployment rate remained at the level of 10.5%. The biggest number of unemployed is in Greece and Spain. Economists believe that due to structural reforms and gradual economic recovery, unemployment rate in EU will go down; however, in the next one or two years it will not fall more for than 10%.
Levels of support and resistance
The nearest resistance level: 1.3916 – Murray level of 8/8.
Support level: 1.3853 – Murray level of 7/8.
Trading tips
It is recommended to open short positions after breakdown of the level of 1.3853 with stop-loss at 1.3880 and a target of 1.3720.
Dmitry Agurbash
Analyst of LiteForex Investments Limited
