EUR/USD: correction in the dollar
|On Monday, the dollar is restoring its positions against the euro and yen. At the beginning of the European session, the pair EURUSD is trading near the level of 1.1180. The technical indicators on the 1-hour and 4-hour charts turned to short positions, signaling the beginning of a downward correction. The return of the EUR/USD pair to the zone below the support level 1.1170 (the upper line of the ascending channel on the daily chart) may trigger a further decrease in the depth of the channel. Strong levels of support are also the levels of 1.1100, 1.1020, 1.1000, and 1.0950.
Nevertheless, the positive dynamics of the pair EUR/USD persists. Only a return below the support level of 1.0830 (the 200-period moving average on the daily chart) may call into question the upward trend of the EUR/USD pair. So far, the positive dynamics of the pair EUR/USD prevails.
As the macro data show, the Eurozone economy started the current year more successfully than expected, and this revives the investors' hopes for the beginning of the curtailment of the ECB's quantitative easing program.
For today, the economic calendar is empty. Tomorrow, the attention of investors will be focused on data on the Eurozone. At 11:00 (GMT + 3), the index of supply managers (PMI) in the services sector and the manufacturing sector from Markit for May (preliminary release) is published. The composite PMI index in the manufacturing sector of the Eurozone is expected to decline to 56.6 in May from 56.8 in April, when it reached a 6-year high. If the data is confirmed, the euro may fall in the foreign exchange market, including against the dollar.
Support levels: 1.1170, 1.1100, 1.1080, 1.1020, 1.1000, 1.0950, 1.0900, 1.0875, 1.0830
Resistance levels: 1.1200, 1.1211, 1.1280, 1.1340
Trading recommendations
Sell in the market. Stop-Loss 1.1205. Objectives 1.1170, 1.1100, 1.1080, 1.1020, 1.1000, 1.0950, 1.0900, 1.0875, 1.0830
Buy Stop 1.1205. Stop-Loss 1.1165. Objectives 1.1250, 1.1280. 1.1340
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