Current trend
Unified European currency continues to trade upward. It is obvious that Euro is supported by the decision of the European Central Bank not to change monetary policy this year and leave interest rate at the previous level. However, favourable statistics on the US labour market can undermine positions of the pair EUR/USD. Last week’s unemployment rate in the USA significantly dropped and number of new jobs outside agricultural sector reached 208 thousand against the forecast of 180 thousand. US economy is steadily gaining momentum. At the same time manufacturing orders in Germany fell by 2.2% and experts believe that the decline is associated with the reduction of orders for capital goods.
This week, major economic data will come from the USA: on Friday, country’s budget for 2014 will be adopted. According to preliminary estimates, adoption will not be delayed, since main parties of the country have come to coordinated decision about social programs.
Support and resistance
The nearest resistance level is the upper limit of the ascending channel at the level of 1.3750. Support level is 1.3675
Trading tips
It is recommended to open long positions after breakdown of resistance level of 1.3750 with stop-loss near 1.3725 and a target of 1.3800.
Dmitry Agurbash
Analyst of LiteForex Group of Companies
