Current trend
Last week the pair EUR/USD has grown due to the rise in business activity index in Eurozone. Last Friday Euro managed to reach the level of 1.3738, after which the pair has corrected downward and is now trading near the level of 1.3680 (Fibonacci retracement 23.6%). This week, attention will be focused on the US news. At the next meeting of the US Fed the volume of redemption of state bonds is going to be decreased.
Support and resistance
On the four-hour chart indicators show possibility of the rate growth. MACD histogram is in the positive zone, its volume is stable. Signal lines of Stochastic have crossed in the overbought zone and are moving upward. Resistance levels are the local highs of 1.3738, 1.3750 and 1.3800. Support levels: 1.3662 (yesterday’s lows), 1.3650 (Fibonacci retracement 38.2%) and 1.3600 (Fibonacci retracement 61.8%).
Trading tips
If current trend maintains, it is recommended to open sell positions in the framework of corrective movement after the rise in the pair up to 1.3738. The target levels are 1.3662 and 1.3650.
Andrey Cherkas
Analyst of LiteForex Group of Companies
