EUR/USD: attention will be focused on European labor market data

November 28, 2014

Current trend

On Thursday the pair EUR/USD had reached the upper limit of the channel at resistance level of 1.2530. After that the price pushed off from this level and went down. Positive data on the key European indices had not supported Euro, while the demand for the USD has increased significantly. Today, downward movement continues; investors strongly sell European currency and poor performance of French economy puts additional pressure on Euro.

Today, the data on European labor market will be known, as well as consumer price index in Eurozone for November. If negative forecast turns out to be correct, the price of the pair EUR/USD can fall to the level of 1.2360.

Levels of support and resistance

The data on labor market in Eurozone can significantly increase volatility in the pair. If the index remains at the previous high level of 11.5%, it will have a negative impact on European currency; while the decline in consumer price index can drop the pair to the key support levels of 1.2400 and 1.2360. In cease of breakdown of the level of 1.2360, the price can fall to the level of 1.2300.

Support levels: 1.2400, 1.2360, 1.2300, 1.2260 and 1.2150.

Resistance levels:  1.2450, 1.2500, 1.2570, 1.2600, 1.2630, 1.2660, 1.2740 and 1.2770.

Trading tips

In the current situation it makes sense to open short positions with stop-loss above the level of 1.2600 and the target of 1.2360; in the medium-term the price is likely to fall further down to the level of 1.2300 (1.2150).

Dmitry Likhachev

Analyst of LiteForex Investments Limited 

Publication source
LiteForex information  LiteForex reviews

January 20, 2017
The dollar has settled moderately lower
Asian stock markets were mixed overnight, after U.S. and European shares closed in the red Thursday. Japan and mainland China bourses managed to move higher (Chinese GDP beat expectations at 6.8%)...
January 20, 2017
A huge disappointment in the UK data
UK retail sales fell most since 2012. We see he fastest pace of decline in almost five years in December. It is due to sales of... pretty much everything from household goods to clothing and food...
January 20, 2017
Trump takes office today. Markets await inauguration speech
Investors await Trump's inauguration and speech due later today as he takes office as the 45th President of the United States. The U.S. dollar was seen giving up some of the gains yesterday with some volatility coming off the EURUSD on the back of the ECB meeting... Trade Rating
FxPro Rating
HotForex Rating Rating
Vantage FX Rating
FBS Rating

Beeoptions Rating
24option Rating
Empire Option Rating
IQ Option Rating
Dragon Options Rating
Anyoption Rating