EUR/USD tried to overcome the level of 1.2700

October 17, 2014

Current trend

Yesterday the pair EUR/USD tried to overcome the level of 1.2700. European currency has weakened against the USD due to the rise in yield of the US ten-year treasury bonds. Sharp decline in EUR took place after the release of European inflationary statistics. It became known that consumer price index on annual basis rose only by 0.3%, which is the worst result since 2009. Growth in price within a month   amounted to 0.4%, which agrees with the forecast. Despite negative statistics Euro had regained some of the losses and almost reached the previous local highs at the level of 1.2844. However, neither the news about the rise in the US industrial production (+1%), nor the reduction in the number of initial applications for the unemployment benefits, (which has decreased by 23 thousand), could not cool down enthusiasm of the “bulls”. It is likely that the USD will need more positive economic data in order regain lost positions.

Support and resistance

Resistance levels are the local highs of 1.2844, 1.2885 and 1.3000.

Support levels: 1.2790 (lows of the Asian session), 1.2700 (Fibonacci retracement of 50%), 1.2624 (lows of 15 October).

Trading tips

It is advisable to open short positions after breakdown of the level of 1.2780 with the target of 1.2700. Buy positions can be opened at the level of 1.2845 with the targets of 1.2885 and 1.2990.

Andrey Cherkas

Analyst of LiteForex Investments Limited

Publication source
LiteForex information  LiteForex reviews

January 23, 2017
Can Supreme Court Ruling Help GBPUSD Remain Bullish ?
Tomorrow, Tuesday 24 January, around 09:30 GMT, the UK Supreme Court will release the Brexit lawsuit Ruling, on whether the UK Prime Minister Theresa May will need the UK parliament’s approval to invoke Article 50 of the Lisbon Treaty, to leave the EU...
January 20, 2017
Cautious EURUSD Ahead of ECB Press Conference
USD, and the US government bond yields, surged last night following Fed president Janet Yellen’s speech to the Commonwealth Club in San Francisco...
January 19, 2017
Is equilibrium out of reach?
Let’s check what’s going on with Oil before turning our attention to the Russian Ruble. “Black gold” is forming a reversal pattern next to the key level of 52.10. The only matter is that this pattern is above the horizontal level, but the 52.10 level can potentially become the neckline of our pattern...

Vantage FX Rating
FxPro Rating
FIBO Group Rating
EXNESS Rating
NPBFX Rating
Grand Capital Rating

OptionRally Rating
99Binary Rating
24option Rating
TopOption Rating
365BinaryOption Rating
Anyoption Rating