Current trend
EUR shows corrective growth against USD at the beginning of the week, recouping the losses of last Friday, when the instrument renewed local lows since May 14. The positions of EUR are strengthening against the background of investors' expectations of the results of the two-day meeting of the US Fed, which will end on June 16. Analysts' forecasts do not imply any changes in the course of monetary policy; however, the comments of officials are very important, given the gradual improvement of the economic situation in the country and the rapid rise in inflationary risks.
The macroeconomic statistics from the eurozone released yesterday also provided additional support to EUR. The volume of industrial production in the region increased by 0.8% MoM in April, having doubled since last month. Analysts had expected a previous growth rate of 0.4% MoM. In annual terms, the growth rate accelerated sharply from +11.5% YoY to +39.3% YoY, which also turned out to be better than market expectations at 37.4% YoY.
Support and resistance
On the D1 chart, Bollinger Bands are gradually reversing horizontally. The price range is actively expanding from below, barely keeping up with the surge in "bearish" sentiment at the end of last week. MACD is going down preserving a stable sell signal (located below the signal line). In addition, the indicator tests the zero level for a breakdown. Stochastic is approaching the level of "20", signaling the growing risks of oversold EUR in the ultra-short term.
Resistance levels: 1.2150, 1.2200, 1.2233, 1.2265.
Support levels: 1.2100, 1.2050, 1.2000.
EUR shows corrective growth against USD at the beginning of the week, recouping the losses of last Friday, when the instrument renewed local lows since May 14. The positions of EUR are strengthening against the background of investors' expectations of the results of the two-day meeting of the US Fed, which will end on June 16. Analysts' forecasts do not imply any changes in the course of monetary policy; however, the comments of officials are very important, given the gradual improvement of the economic situation in the country and the rapid rise in inflationary risks.
The macroeconomic statistics from the eurozone released yesterday also provided additional support to EUR. The volume of industrial production in the region increased by 0.8% MoM in April, having doubled since last month. Analysts had expected a previous growth rate of 0.4% MoM. In annual terms, the growth rate accelerated sharply from +11.5% YoY to +39.3% YoY, which also turned out to be better than market expectations at 37.4% YoY.
Support and resistance
On the D1 chart, Bollinger Bands are gradually reversing horizontally. The price range is actively expanding from below, barely keeping up with the surge in "bearish" sentiment at the end of last week. MACD is going down preserving a stable sell signal (located below the signal line). In addition, the indicator tests the zero level for a breakdown. Stochastic is approaching the level of "20", signaling the growing risks of oversold EUR in the ultra-short term.
Resistance levels: 1.2150, 1.2200, 1.2233, 1.2265.
Support levels: 1.2100, 1.2050, 1.2000.