Industry news:
European Central Bank (ECB) Governing Council member Klass Knot crossed the wires in the last minutes, reiterating that it was indisputable that inflation was still too low and the bank was determined to act if there were adverse scenarios.
"We are still suffering from prolonged uncertainty," said Knot and added that the outlook for the second and the third quarters of the year was less favorable than the first quarter. Nevertheless, Knot also said that they were not in the recessionary territory yet.
Trading recommendation:
EUR/USD did perfect test and reject of the hourly exponential moving average (20) in a downward trending channel, which is strong sign of further weakness on the EUR. The level at 1.1350 looks very attractive for new selling wave and my advice is to watch for selling opportunities.
Green rectangles – Trading range (broken)
Orange rectangle- Support 1 (1.1320)
Red rectangle – Support 2 (1.1280)
Red line – 20 EMA
MACD oscillator is showing the new momentum low in the background and that EUR is trading in the negative territory, which confirms my bearish view. RSI oscillator is showing flip down and potential new wave down is coming. As long as the EUR is trading below the 1.1400, my advice is to sell on the rallies with targets at 1.1320-1.1280.
