EUR/USD: The Dollar Remains Under Pressure
Yuri Papshev | Jul 14, 2017 09:16
Investors are sceptical about further tightening of monetary policy in the US due to the recent slowdown in US inflation. Against the backdrop of the Fed's restrained position on further interest rate hikes, the US dollar is under pressure in the foreign exchange market.
Today at 12:30 GMT, US inflation indicators for June will be published. The US dollar will strengthen in the foreign exchange market if the consumer price index comes out better than forecasted (+ 0.1% in June and +1.7% in annual terms).
Today, at the beginning of the European session, the EUR/USD is trading higher. The pair pushed off the short-term support level 1.1395 (200-period moving average on the 1-hour chart, the 50-period moving average on the 4-hour chart) and tends to the nearest target at resistance level 1.1440 (June highs).
The technical indicators on the 1-hour, 4-hour charts again turned back to long positions.
The positive dynamics of the EUR/USD pair remains. The pair continues to trade in the uplink on the daily chart. In case of resumption of EUR/USD pair growth and breakdown of resistance level 1.1480, the target will be resistance level 1.1600 (EMA200 on the weekly chart).
In case of breakdown of the support level 1.1395, the pair may go to the following important support levels 1.1285 (Fibonacci level of 23.8% corrective growth from the lows reached in February 2015 in the latest wave of global decline of the pair from 1.3900 level, as well as 200- Period moving average on the 4-hour chart), 1.1120 (May highs and the bottom line of the rising channel on the daily chart).
Support levels: 1.1395, 1.1368, 1.1285, 1.1240, 1.1210, 1.1120, 1.0960
Levels of resistance: 1.1440, 1.1480, 1.1500, 1.1600, 1.1785
Trading recommendations
Sell Stop 1.1390. Stop-Loss 1.1450. Take-Profit 1.1350, 1.1300, 1.1285, 1.1215, 1.1170, 1.1120
Buy Stop 1.1450. Stop-Loss 1.1390. Take-Profit 1.1480, 1.1500, 1.1600, 1.1785
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