EUR/USD
The pair dips to 11 week low compared to US dollar, it took the parallel support on February 27th low and close above 1.367 levels. The series of economic events drove the pair towards lower levels. The flash estimate for the Q1 of 2014 the eurozone's expansion during the Q1 was 0.2%, whereas Germany's economy is gaining momentum in the Q1 of 2014. If we look at the French economy, it is stagnant showing no growth in Q1 of 2014. The German's GDP up 0.8% in Q1 2014. From these economic points we can get a clear picture of the eurozone, that apart from Germany, eurozone growth is not at that pace as expected.
Technical view
The pair broke the crucial support at 1.3673 but well managed to close above this level. In yesterday's trading session, bulls tried very hard to close above the 1.367 levels. As we mentioned in our previous article (April 14, 2014), the game would change its direction only having closed below 1.367. This time bulls succeeded. Traders keep sl at 1.367 for long positions.
The daily momentum oscillators supported the bulls to take the pair above 1.37 levels again. The fib level 161.8 and February 27th low pause the down fall. On the upside, the pair is facing strong resistance at 1.3775. The trading range is fixed between 1.3775-1.364 levels. Once the pair breaks the 1.364 levels, it immediately will fall up to 1.3617 (200daily EMA) most crucial support below this, 1.3562 and 1.348 is an open target in coming sessions.
In Asia's session, the pair is trading at 1.3711. It is facing strong resistance at the 23.6 fib level. The pair looks safe for buyers only above 1.3732 levels. On the upside, the resistance exists at 1.3732, 1.376, 1.3775 and 1.38 levels. On the downside, if the pair breaks the 1.364 levels, it will drift up to 1.3617 immediately and later 1.3585 and 1.3562.
KEY LEVELS - 1.367
A weekly close above 1.367, bulls will have an upper hand
Intraday close above 1.3775, bulls will get some strength
Weekly closes below 1.367, gates open for deep correction.
The material has been provided by InstaForex Company - www.instaforex.com
For detail explanation and best discovery on market trends you may visit via Analysis of EUR/USD for May 16, 2014 . Thanks for your support on Analysis of EUR/USD for May 16, 2014
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