Today, on May 20th, the US Dollar has already gained some value against the common European currency, which means that EURUSD is currently trading lower – that was a decline from 1.3713 down to 1.3701. Still, the currency pair is trading within the 1.3688-1.3731. price range.
The decline was caused by negative macroeconomic stats from Germany published earlier today during the European trading session, Market Leader reports.
According to the analysts working for the edition, the German PPI came out weaker than expected, thereby disappointing traders and investors, which pushed the common currency lower, thereby letting the American currency regain some of the lost ground. In particular, April's PPI figures came out 0,9% lower than a year before. At the same time, the prices on non-durable goods increased by 1,4% in April 2014 as compared to April 2014.
At the same time, the overall energy price index dropped 0,2% over the same reporting period. The overall price index was down by 0,1%, which means that the inflation issue still exists in the eurozone.
EURUSD
At the same time, Masterforex-V Academy conducted comprehensive analysis of the H1 EURUSD chart. Despite the decline seen this morning, there has been no considerable change in the price tendency so far.
In particular, the currency pair is still trading within the scope of the 1.3688-1.3731 price range. The price keeps on forming a bullish reaction to the previous bearish move. This is happening inside the price range. At this point, the reaction is equal to 23.6% of the preceding move.
The examined chart indicates a reversing pattern (reversed head and shoulders, marked red). At this point, the price is forming the right shoulder of the pattern. Still, Masterforex-V Academy draws your attention to the price reaction to support and resistance levels. In some cases, the pattern may turn out to be fake, thereby indicating no reversal.
Resistance: 1.3731 (33) + 1.3772(74) + 1.3811 + 1.3842.
Support : 1.3702 + 1.3688 + 1.3679 + 1.3648.
