Published On: Tue, May 2nd, 2017

EUR/USD: general review

InstaForex

Current trend 

From the opening of the market euro continues to trade in the lateral channel with the upper border at 1.0925 and lower one at 1.0864. Breaking through one of them a retesting a border will give a new impulse. Yesterday’s news from the USA failed to support US dollar. Market players did not pay attention to the fact that Congress members came to an agreement on the main budget items. According to initial estimates, the Congress failed to support Trump’s initiative to increase military expenses in the current year by $ 30 bln. The project of financing a wall on the border with Mexico also was not met positively.

According to experts, euro may be under pressure from the situation with French elections namely the statements by candidate Macron about the possibility of leaving the EU. These are likely to be populist statements to gain additional rating but as of now the market has shown almost no reaction to the news.

Tomorrow at 11:00 (GMT+2) information on the EU GDP for Q1 2017 will be published. The value is expected to remain unchanged on the level of 1.7%. 

Support and resistance

Stochastic has reached 48 points and gives no clear signals for opening positions.

Support levels: 1.0864, 1.0803, 1.0742.

Resistance levels: 1.0925, 1.1000, 1.1064.

Trading tips

Short positions may be opened from 1.0864 with stop-loss at 1.0925 and targets at 1.0780.

Forex Analysis

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