Trading news

EUR/USD: the pair is going to fall

Current trend

Yesterday the pair EUR/USD has been falling and hit the lows at 1.3641. Investors were disappointed by the weak data on Manufacturing PMI of Eurozone. Index dropped down to the level of 52.5 points, which is the lowest rate this year. From the other hand, preliminary data on Manufacturing PMI in USA exceeded forecasts and reached 56.2 points. Signs of EU economic decline made investors turn towards American currency.

Major release for today will be April’s New Home Sales in USA. The indicator is expected to increase up to the level of 425 000 and support the Dollar.

Support and resistance

The price will probably go down to the levels of 1.3584 and 1.3533, however small correction is possible to the level of 1.3657. Technical indicators confirm the possibility of the fall. Bollinger Bands show a divergence, indicating the Bearish trend. MACD histogram is in negative zone, its volumes are increasing. Stochastic lines are crossing and forming a signal to sell.

Trading tips

It is recommended to open short trades at current price with targets at 1.3584.

 

Dmitriy Zolotov
Analyst of LiteForex Investments Limited

Friday, 23 May, 2014 / 11:05

Source : http://www.liteforex.com/

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