At the start of today's European session, EUR/USD traded near 1.1825 mark, testing for a breakout of the key long-term support level 1.1835. The breakout of the support levels 1.1835 and 1.1780 will increase the risks of a resumption of the long-term bearish trend in EUR/USD.
Despite the exceeding expectations European PMI indices, investors are pessimistic about the prospects for the Eurozone economy amid renewed lockdowns and slow rates of vaccination.
The euro also reacted rather sluggishly to the publication of PMI indices, and the EUR/USD pair declined again after a slight increase immediately after the publication of the indices, testing the key support level 1.1835.
"The crisis caused by the coronavirus continues, and this postpones the expected strong recovery in activity", Ifo analysts say, and the combined losses of the German economy, which is the locomotive of the entire European economy, will amount to 405 billion euros in 2020-2022.
In an alternative scenario, there will be a rebound from the level 1.1835. However, to resume long positions, it will be necessary to wait for the EUR/USD to rise into the zone above the resistance levels of 1.1911, 1.1925.
Trading Recommendations
Sell Stop 1.1790. Stop-Loss 1.1860. Take-Profit 1.1700, 1.1600, 1.1550, 1.1285
Buy Stop 1.1860. Stop-Loss 1.1790. Take-Profit 1.1911, 1.1925, 1.1990, 1.2055, 1.2070, 1.2100, 1.2180, 1.2270, 1.2340, 1.2555, 1.2580, 1.2600