EUR/USD: European currency remains under pressure
Current trend
The European currency shows multidirectional trading dynamics against the US dollar during the Asian session, consolidating near 1.1330 after falling on Tuesday. As a result of yesterday's trading, the instrument was actively losing value, despite the fact that macroeconomic indicators contributed to the upward dynamics of risky assets. A study by the Center for European Economic Research (ZEW) recorded an increase in the Economic Sentiment Index in the eurozone in January from 26.8 to 49.4 points, while analysts expected a correction to 26.4 points. The Economic Sentiment Index in Germany for the same period increased from 29.9 to 51.7 points, also ahead of the preliminary estimates of experts at the level of 32.7 points.
Investors today are focused on the statistics on consumer inflation in Germany for December. Market forecasts do not imply significant changes in the pace of price growth in Europe's largest economy; however, traders hope to see evidence of a possible tightening of monetary policy by the European Central Bank (ECB) in the statistics.
Support and resistance
On the daily chart, Bollinger Bands demonstrate the flat trading dynamics. The price range remains virtually unchanged, indicating an approximate balance of power in the short term. MACD is going down preserving a stable sell signal (located below the signal line). The indicator is trying to consolidate below the zero level. Stochastic keeps a steady downward direction but is already approaching its lows, which indicates the risks of oversold euro in the ultra-short term.
Resistance levels: 1.1363, 1.1400, 1.1422, 1.1460.
Support levels: 1.1300, 1.1255, 1.1220, 1.1185.
The European currency shows multidirectional trading dynamics against the US dollar during the Asian session, consolidating near 1.1330 after falling on Tuesday. As a result of yesterday's trading, the instrument was actively losing value, despite the fact that macroeconomic indicators contributed to the upward dynamics of risky assets. A study by the Center for European Economic Research (ZEW) recorded an increase in the Economic Sentiment Index in the eurozone in January from 26.8 to 49.4 points, while analysts expected a correction to 26.4 points. The Economic Sentiment Index in Germany for the same period increased from 29.9 to 51.7 points, also ahead of the preliminary estimates of experts at the level of 32.7 points.
Investors today are focused on the statistics on consumer inflation in Germany for December. Market forecasts do not imply significant changes in the pace of price growth in Europe's largest economy; however, traders hope to see evidence of a possible tightening of monetary policy by the European Central Bank (ECB) in the statistics.
Support and resistance
On the daily chart, Bollinger Bands demonstrate the flat trading dynamics. The price range remains virtually unchanged, indicating an approximate balance of power in the short term. MACD is going down preserving a stable sell signal (located below the signal line). The indicator is trying to consolidate below the zero level. Stochastic keeps a steady downward direction but is already approaching its lows, which indicates the risks of oversold euro in the ultra-short term.
Resistance levels: 1.1363, 1.1400, 1.1422, 1.1460.
Support levels: 1.1300, 1.1255, 1.1220, 1.1185.
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