EUR/USD: flat trading dynamics 01 April 2021, 11:45

EUR/USD: flat trading dynamics

01 April 2021, 11:45

Scenario
Timeframe	Intraday
Recommendation	BUY STOP
Entry Point	1.1760
Take Profit	1.1900
Stop Loss	1.1690
Key Levels	1.1600, 1.1657, 1.1700, 1.1758, 1.1800, 1.1834, 1.1900

Alternative scenario
Recommendation	SELL STOP
Entry Point	1.1695
Take Profit	1.1600
Stop Loss	1.1758
Key Levels	1.1600, 1.1657, 1.1700, 1.1758, 1.1800, 1.1834, 1.1900

Current trend

EUR is showing flat trading dynamics during today's Asian session, consolidating in anticipation of new drivers in the market. The day before, the instrument strengthened slightly, retreating from the lows since November 2020. This was facilitated by technical factors as well as profit taking on USD ahead of Friday’s publication of the US labor market report for March.

Macroeconomic statistics from Europe remained neutral, which, coupled with the difficult epidemiological situation in the region, creates a very depressing picture for EUR. The Core Consumer Price Index in the euro area in March slowed down from +1.1% YoY to +0.9% YoY, while the forecasts suggested an increase in the index to +1.2% YoY. The unemployment rate in Germany remained at 6% in March, while the change in the number of unemployed slowed sharply from –37K to –8K, which, however, turned out to be better than market expectations at –3K.

Support and resistance

Bollinger Bands in D1 chart demonstrate a stable decrease. The price range is expanding, making way to new record lows for the "bears". MACD is going down keeping a fairly stable sell signal (located below the signal line). Stochastic, which has been in the oversold area for a long time, is trying to reverse upwards, signaling the risks of an oversold EUR in the ultra-short term.

Resistance levels: 1.1758, 1.1800, 1.1834, 1.1900.

Support levels: 1.1700, 1.1657, 1.1600.

Trading tips

To open long positions, one can rely on the rebound from the support level of 1.1700 with the subsequent breakout of 1.1758. Take-profit – 1.1900. Stop-loss – 1.1690. Implementation time: 2-3 days.

The breakdown of 1.1700 may serve as a signal to new sales with the target at 1.1600. Stop-loss – 1.1758.