Despite negative US capacity utilization data and positive news regarding April’s Economic Sentiment, the Euro was unable to break through the weak 1.1314 Resistance point (FE 38.2%) which would lead to the clear 1.1320 strong Resistance. At the moment, the immediate Support level is at the psychological 1.13 level, while the next Support stands at 1.1279. The 200HMA is fast approaching, currently at 1.1266.
The MACD and Stochastics are both supportive of a downwards movement, with the latter’s candles increasing in size, while the RSI, trading at 45 is not showing any definite signs. No important releases are expected today or tomorrow for the US, while for the Euro Area, the current account – trade balance releases tomorrow could move the charts. Otherwise, it remains to be seen whether the lack of available data would mean that non-agreement of the two main UK political parties regarding Brexit can spill over to the European market.
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Dr Nektarios Michail
Market Analyst
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