At the end of the previous week, the euro corrected slightly up from its local lows. The pair managed to gain positions amid the weakness of the US currency which lacks support from the Federal Reserve and macroeconomic data.
In particular, the US industrial output was down by 0.6% in March while analysts predicted a decline by only 0.1%. The Reuters/Michigan Consumer Sentiment Index fell from 91.0 to 89.7 points against an expected growth to 92.0 points.
However, the euro is still failing to keep strengthening and has started trading down in the morning session today.
Bollinger Bands on the daily chart has turned horizontally while the price range is showing almost no changes. MACD is keeping its strong downward trend and a sell signal. Stochastic is in the oversold zone and trying to turn up suggesting the possibility of an upward correction in the short-term.
The indicators recommend waiting for clearer trading signals.
Support levels: 1.1275, 1.1233 (14 April low), 1.1200, 1.1160 (near 24 March lows), 1.1100.
Resistance levels: 1.1300, 1.1321 (15 April high), 1.1376, 1.1437, 1.1464 (12 April high), 1.1500, 1.1533.