Yesterday Unified European currency traded in the narrow channel in the range of 60-70 points. Investors’ attention was focused on consumer price index of Eurozone, which was below expectations remaining at the previous level. According to many experts Europe is moving towards deflation, since the driving force of EU-Germany has slowed down. Inflation amounts to 1.3%, which is 2% below the target level of 2%, despite increasing consumer demand.
Support and resistance
The nearest resistance level is 1.3649 (moving average with the period 21), next resistance level is the local highs of 1.3681. Support levels are at the levels of 1.3582 (yesterday’s lows), 1.3545 (moving average with the period 100) and 1.3520 (Fibonacci retracement line 61.8%).
It is recommended to open long positions after breakdown of the level of 1.3620 with stop-loss at 1.3600 and a target of 1.3681.
Analyst of LiteForex Group of CompaniesPublication source