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EUR shows ambiguous trading dynamics against USD during today’s Asian session, consolidating after a rather strong growth the day before, which allowed EUR to regain some of its losses in the middle of the week.
Strong support for the instrument on Thursday was provided by strong macroeconomic statistics from Europe, while market participants positively assess the prospects for further lifting of quarantine restrictions in the region. The volume of retail sales in the eurozone in March increased by 2.7% MoM after rising by 4.2% MoM in February against the expected +1.5% MoM. On an annualized basis, sales volumes rose by 12% YoY after declining 1.5% YoY in February. Forecasts suggested an increase of 9.6% YoY.
Today, investors are focused on data from Germany on the volume of imports and exports, as well as the growth rate of industrial production in March.
Support and Resistance
In the D1 chart, Bollinger Bands are reversing horizontally. The price range is almost unchanged, but it remains rather spacious for the current level of activity in the market. MACD indicator reverses to growth while trying to form a new buy signal (the histogram is about to consolidate above the signal line). Stochastic is showing similar dynamics being located in the middle of its area.
· Resistance levels: 1.2087, 1.2115, 1.2148, 1.2200.
· Support levels: 1.2037, 1.2000, 1.1945, 1.1900.
Trading Tips
To open long positions, one can rely on the breakout of 1.2087. Take-profit – 1.2200. Stop-loss – 1.2037. Implementation time: 2-3 days.
A rebound from 1.2087 as from resistance followed by a breakdown of 1.2037 may become a signal for new sales with the target at 1.1945. Stop-loss – 1.2087.
Scenario
Timeframe: Intraday
Recommendation: Buy Stop
Entry Point: 1.2090
Take Profit: 1.2200
STOP LOSS: 1.2037
Key Levels: 1.1900, 1.1945, 1.2000, 1.2037, 1.2087, 1.2115, 1.2148, 1.2200
Alternative Scenario
Timeframe: Intraday
Recommendation: Sell Stop
Entry Point: 1.2035
Take Profit: 1.1945
Stop Loss: 1.2087
Key Levels: 1.1900, 1.1945, 1.2000, 1.2037, 1.2087, 1.2115, 1.2148, 1.2200
