EUR/USD: ambiguous trading dynamics
Current trend
EUR is showing ambiguous dynamics against USD during today's Asian session, testing 1.2200 for a breakdown again.
After the "bullish" start of the week, EUR is constantly under pressure in anticipation of the release of a strong report on the US labor market, which will be published at the end of the week. Macroeconomic statistics from the eurozone remains ambiguous: yesterday, market participants reacted negatively to statistics from Germany on retail sales. In April, the indicator decreased by 5.5% MoM after a growth of 7.7% MoM in March. Analysts had expected "bearish" trend to appear, but counted on only –2% MoM decline. In annual terms, sales growth slowed sharply from +11% to +4.4% YoY against the forecast of +10.1% YoY.
Today, investors are focused on statistics from the eurozone on the indices of business activity in the services and manufacturing sectors from Markit for May. With the opening of the American session, the focus will shift to similar indicators from the US, which will be complemented by the ADP Employment Change report.
Support and resistance
Bollinger Bands in D1 chart show moderate growth. The price range is actively narrowing, reacting to the emergence of ambiguous dynamics in the short term. MACD is declining keeping a weak sell signal (located below the signal line). Stochastic, having approached the level of "80", reversed into a descending plane, responding to the uncertain "bearish" start of trading this week.
Resistance levels: 1.2265, 1.2309, 1.2348, 1.2400.
Support levels: 1.2200, 1.2150, 1.2078, 1.2000.
EUR is showing ambiguous dynamics against USD during today's Asian session, testing 1.2200 for a breakdown again.
After the "bullish" start of the week, EUR is constantly under pressure in anticipation of the release of a strong report on the US labor market, which will be published at the end of the week. Macroeconomic statistics from the eurozone remains ambiguous: yesterday, market participants reacted negatively to statistics from Germany on retail sales. In April, the indicator decreased by 5.5% MoM after a growth of 7.7% MoM in March. Analysts had expected "bearish" trend to appear, but counted on only –2% MoM decline. In annual terms, sales growth slowed sharply from +11% to +4.4% YoY against the forecast of +10.1% YoY.
Today, investors are focused on statistics from the eurozone on the indices of business activity in the services and manufacturing sectors from Markit for May. With the opening of the American session, the focus will shift to similar indicators from the US, which will be complemented by the ADP Employment Change report.
Support and resistance
Bollinger Bands in D1 chart show moderate growth. The price range is actively narrowing, reacting to the emergence of ambiguous dynamics in the short term. MACD is declining keeping a weak sell signal (located below the signal line). Stochastic, having approached the level of "80", reversed into a descending plane, responding to the uncertain "bearish" start of trading this week.
Resistance levels: 1.2265, 1.2309, 1.2348, 1.2400.
Support levels: 1.2200, 1.2150, 1.2078, 1.2000.
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