Current trend
Yesterday, Euro strengthened against the USD reaching the level of 1.613 amid favourable news from Spanish labour market. Traders are waiting for the new program of ECB to stimulate business in Eurozone. Former member of ECB, who is now a financial adviser Jose Vilnas suggested that considering low inflation and consistently high unemployment rate, European regulator can reduce interest rates in order to accelerate economic recovery
Support and resistance
The nearest resistance levels on the daily chart are the local highs of 1.3600 and 1.3621, the latter one coincides with 61.8% of Fibonacci retracement. The targets of the “bulls” are 1.3650 and 1.3710 (Fibonacci retracement of 76.4%). Support levels are1.3550,1.3523 and 1.3489.
Trading tips
Today it makes sense to place buy orders from the level of 1.3600 with stop loss at the level of 1.3580 and profit taking at the level of 1.3650.
Andrey Cherkas
Analyst of LiteForex Group of Companies
