Last week the Unified European currency reached the highs of 1.3811 and then corrected to the level of 1.3767. Uptrend prevails, as the rise is supported by positive EU economic data: on Tuesday business sentiment index for December increased by 8.1 points, amounting to 68.3 on annual basis. In the largest European economy in Germany the same index reached the level of 62 points, which is the record value since 2006. Index of current economic conditions also went up, reaching the level of 32.4 points and exceeding the forecast by 30 points.
EU economy is gradually recovering, which has a positive impact on Euro rate; however situation can rapidly change today if the US Fed adopts the decision to reduce volume of incentive programs. Sentiment index in business sector of Germany will become known today; however before the announcement of the US decision on monetary policy, volatility in the pair is going to be low.
Support and resistance
The nearest resistance level is the recent highs of 1.3809. Support level is the local lows of 1.3710.
It is recommended to open long positions above resistance level of 1.3809 with stop-loss near 1.3750 an a target of 1.4000.
Analyst of LiteForex Group of CompaniesPublication source