The euro exchange rate against the U.S. dollar remains under pressure, with the next step down after a brief consolidation, probing psychological support levels below 1.37. Technical indicators currency pair EUR/USD on the forex market are negative on all timeframes, with price action, set below the daily cloud, which remains on the lower side, looking for an opportunity for the final push to the key short-term support at 1.3670. A breakthrough here confirms ending phase correction 1.3670/1.3992 and will signal the formation of a bearish pattern "double top" for the currency pair euro-dollar, which can cause more significant cancellation greater upward trend that started from 1.2042; the minimum in 2012. Correctional activity appears limited with an initial barrier at 1.3770, tops the previous consolidation and rally should be scoped to 1.38, 38.2% Fibonacci to decrease from 1.3992 to 1.3688. "Any break above here would delay immediate bears" - says Forex Broker FinFX.
Put pressure on the single currency as disappointing data of German economic sentiment index ZEW, which increase the likelihood that the European Central Bank has grounds for further action at its next meeting on monetary policy, which will be held in June. Investor confidence in Europe's largest economy dropped for a fifth consecutive month in May, according to a report published yesterday, May 13, 2014. Adding to the probability of easing policy of the European Central Bank have been reports that the German Bundesbank was ready to support any action of the ECB, which will be taken with respect to monetary policy. The euro traded at 1.3715 after reaching 1.3688 low on Tuesday, which was the lowest level since April 4. The Bundesbank President, Jens Weidmann, is expected to make his address today.
Res: 1.3773; 1.3800; 1.3840; 1.3876
Sup: 1.3688; 1.3670; 1.3642; 1.3619 