Current trend
Unified European currency is recently trading in the narrow trading channel of 90 points. Yesterday the price repeatedly broke down moving average with the period 200; however, bears did not consolidated success and the price returned to the previous level of 1.3590.
The meeting of European Central Bank, which will be held today, will announce interest rate. It is assumed that this indicator of the monetary policy will remain at the previous level of 0.25%. Preliminary estimate shows that inflation in November will rise from 0.7% to 0.9%, so ECB is unlikely to raise the rate in the circumstances, as it will increase inflationary pressure.
Meanwhile EU news shows that GDP growth rate has slowed down in Q3. The decline is associated with poor economic data of the largest economies of EU, such as France and Germany. Therefore, interest rate is expected to remain low for a long time.
Support and resistance
The nearest resistance level on the four-hour chart is 1.3625. Support level is the bottom limit of the range at the level of 1.3521.
Trading tips
It is recommended to open long positions in case of breakdown of the level of 1.3625 with the target of 1.3730 and stop-loss near 1.3590
Dmitry Agurbash
Analysts of LiteForex Group of Companies
