On Tuesday, the US dollar extended its moderate strengthening against the European currency. At the Asian deals we could see some growth trials to the range of 1.4648, but prior to the European session opening the Euro fell under the pressure of the American currency. For a few hours the pair\'s drop faced the resistance level at 1.4590 and overcame it easily, fixing the session local minimum at 1.4530. This lowering was restrained by the support level at 1.4534. As we saw yesterday, in the late trading the pair\'s rollback from this level allowed the European currency to recover a half of positions lost in the first part of the day. The trading day closed with a small advantage of the greenback.
It may seem strange but the pair\'s decrease was not affected by the German positive import price index which ticked up to 1.30% versus -0.90% month earlier, consensus 0.80%. The Eurozone consumer confidence also moves to zero level leaving the negative zone. This index came in at -19.0 against -22.0 for the last period.
Concerning the US fundamental data, may be pointed out a slight easing of consumer confidence, which declined to 53.14 against 54.40 in the previous period. The experts were waiting for this index to rise further. ABC consumer confidence index remained unchanged and stood at -46.0.
Taking into consideration the technical aspect, worth noticing that pair\'s downward movement yesterday below 1.4595 where was taking its course the upper bound of the rising price channel from August 13 managed to give a good support to the US currency. The deals closing was also under this line\\signaling about possible correctional trend extension.
As seen, the pair is trying to test the range mentioned above, which comes in as a resistance. The Bollinger bands demonstrate a small upside reversal, keeping a high liquidity rate in the market. The indicator left the sales zone and at present, is trying to show low Euro purchase volume against the US dollar.
The main resistance levels are: 1.4660, 1.4690, 1.4734
Support levels: 1.4590, 1.4534, 1.4479.
Take a look at 200-day exponential moving average which is now at 1.4654 and can serve as a strong barrier for the further pair\'s increase.
Today, I recommend to buy the pair at 1-hour timeframe closing above 1.4635 with the target – T/P 1.4690 and S/L 1.4606
Sell the pair at 1-hour timeframe closing below 1.4574 with the target – T/P 1.4541 and S/L 1.4602.
Best regards,
Analyst: M.A.Magdalinin
