EUR/USD: general analysis for May 20, 2015

May 20, 2015

Current trend

The European currency continues to decline against the American dollar. Only yesterday the pair EUR/USD has lost over 180 points. The decline was caused by the news that ECB is going to expand stimulus program in May and June. If economy does not demonstrate signs of recovery, it is possible that in September the volume will be increased.

The second news, which was also not favourable for Euro is the downgrade of credit rating of 20 largest banks of Europe, due to the fact that the possibility of getting government support has decreased and in the event of the financial collapse many financial institutions can turn bankrupt.

Today a meeting of the US Fed will be held. It is likely that monetary policy will be left unchanged; therefore, significant rise in the USD is not expected. 

Support and resistance

The nearest resistance level is 1.1169 (1/8 Murray). Support level: 2/8 (1.1109).

Trading tips 

It is recommended to open short positions after breakdown of the level of 1.1109 with protective orders at 1.1145 and the target of 1.1050.

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...

XM Rating
HotForex Rating
OANDA Rating Trade Rating
OctaFX Rating
Orbex Rating

99Binary Rating
Dragon Options Rating
GTOptions Rating
Banc De Binary Rating Rating
EZTrader Rating