Current trend
The European currency shows flat dynamics of trading against the US dollar during the Asian session, consolidating near 1.1060 and waiting for new drivers. The day before, the euro showed a sharp weakening against the US currency, which did not allow the instrument to consolidate on new local highs from March 1.
The return of "bearish" trend was due to the growth of negative sentiments regarding the impact of sanctions against Russia on the global and European economy in particular. Among other things, analysts are trying to assess the prospects for interruptions in gas supplies to the EU due to the introduction of a new mechanism for paying current and subsequent contracts in rubles. Many European countries have said they will not make concessions to Russia, which could lead to a potential cessation of exports by the Russian Federation.
The macroeconomic statistics from the EU published yesterday had only a minor impact on the dynamics of the instrument. Retail Sales in Germany rose by 0.3% in February, which was slightly worse than market expectations at the level of 0.5%. In annual terms, sales volumes slowed down from 10.4% to 7.0%, while experts expected a fall to 6.1%. At the same time, the German labor market in March showed very encouraging resilience on the eve of a new possible crisis. The Unemployment Change in the country fell by 18K, slowing down, however, after a decline of 33K.
Support and resistance
In the D1 chart, Bollinger Bands are reversing horizontally. The price range is almost unchanged, reflecting the development of flat dynamics of trading in the short term. MACD is growing preserving a weak buy signal (located above the signal line). Stochastic, having reached the level of "80", reversed into a descending plane, reacting to the appearance of corrective dynamics on the results of Thursday.
Resistance levels: 1.1100, 1.1150, 1.1185, 1.1220.
Support levels: 1.1051, 1.1000, 1.0957, 1.0900.
The European currency shows flat dynamics of trading against the US dollar during the Asian session, consolidating near 1.1060 and waiting for new drivers. The day before, the euro showed a sharp weakening against the US currency, which did not allow the instrument to consolidate on new local highs from March 1.
The return of "bearish" trend was due to the growth of negative sentiments regarding the impact of sanctions against Russia on the global and European economy in particular. Among other things, analysts are trying to assess the prospects for interruptions in gas supplies to the EU due to the introduction of a new mechanism for paying current and subsequent contracts in rubles. Many European countries have said they will not make concessions to Russia, which could lead to a potential cessation of exports by the Russian Federation.
The macroeconomic statistics from the EU published yesterday had only a minor impact on the dynamics of the instrument. Retail Sales in Germany rose by 0.3% in February, which was slightly worse than market expectations at the level of 0.5%. In annual terms, sales volumes slowed down from 10.4% to 7.0%, while experts expected a fall to 6.1%. At the same time, the German labor market in March showed very encouraging resilience on the eve of a new possible crisis. The Unemployment Change in the country fell by 18K, slowing down, however, after a decline of 33K.
Support and resistance
In the D1 chart, Bollinger Bands are reversing horizontally. The price range is almost unchanged, reflecting the development of flat dynamics of trading in the short term. MACD is growing preserving a weak buy signal (located above the signal line). Stochastic, having reached the level of "80", reversed into a descending plane, reacting to the appearance of corrective dynamics on the results of Thursday.
Resistance levels: 1.1100, 1.1150, 1.1185, 1.1220.
Support levels: 1.1051, 1.1000, 1.0957, 1.0900.