EUR/USD: Week Starts With Decline
LiteForex Europe | Apr 19, 2016 02:57AM ET
At the end of the previous week, the euro corrected slightly up from its local lows. The pair managed to gain positions amid the weakness of the US currency which lacks support from the Federal Reserve and macroeconomic data.
In particular, the US industrial output was down by 0.6% in March while analysts predicted a decline by only 0.1%. The Reuters/Michigan Consumer Sentiment Index fell from 91.0 to 89.7 points against an expected growth to 92.0 points.
However, the euro is still failing to keep strengthening and has started trading down in the morning session today.
Bollinger Bands on the daily chart has turned horizontally while the price range is showing almost no changes. MACD is keeping its strong downward trend and a sell signal. Stochastic is in the oversold zone and trying to turn up suggesting the possibility of an upward correction in the short-term.
The indicators recommend waiting for clearer trading signals.
Support levels: 1.1275, 1.1233 (14 April low), 1.1200, 1.1160 (near 24 March lows), 1.1100.
Resistance levels: 1.1300, 1.1321 (15 April high), 1.1376, 1.1437, 1.1464 (12 April high), 1.1500, 1.1533.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.