EUR/USD: general analysis

Current trend

The single European currency continues declining against the US Dollar. The main factor which affects the EUR/USD pair is the Fed’s decision to raise interest rates by 0.25 points. Moreover, Fed Chair Janet Yellen stated that more rate hikes are possible over the next year if US economy continues strengthening. Therefore, the European currency will remain under pressure for quite a long period of time.

Economists suggest that US Unemployment Rate will decline to 4.7% during 2016-2018, while economic growth will reach the level of 2.2%.

Support and resistance

Support level: 1.0858 (1/8 Murray level).
The nearest resistance level is 1.0900 (0/8 Murray level).

Trading tips

Short positions can be opened after the breakdown of the level of 1.0800 with the target at 1.0740 and stop-loss at 1.0825.