28, May 2014

EUR/USD (a 4-hour chart)

EUR/USD (a 4-hour chart)

General overview

The European currency slightly fell against the dollar, which was probably the result of the technical levels influence, providing support for the pair now. We did not receive anything interesting from the Eurozone, still the general background rather plays against the euro after Mario Draghi said that the disinflation can cause consumers and businesses to postpone purchases and investments. The Bank will not allow the inflation to remain too low for a long period of time.

Trading recommendations

The potential pullback target may become the downtrend channel upper bound 1.3680. We expect it to retest the resistance level 1.3690. If the volumes are low, the price may bounce down. The potential decrease target is the price support level 1.3570