The dollar remains under pressure in the foreign exchange market.
Traders continue to sell the dollar against major currency competitors, despite the release of positive macro statistics. Yesterday, some positive data on the United States were also published. Personal income of American consumers rose by 0.4% in April (against +0.2% in March). The basic price index (expenditure on personal consumption), which is an important indicator of inflation, also increased in April by 0.2% (the forecast was +0.1% and -0.1% in March).
As US Federal Reserve spokesman Lael Brainard said yesterday that the Fed may soon raise short-term interest rates. However, if inflation does not accelerate, then the Fed's plans can be adjusted. According to Brainard, the inability to achieve a target inflation rate of 2% "raises concerns."
Today, at 09:00 (GMT), eurozone preliminary data on the unemployment rate for April will be published (forecast 9.4% vs. 9.5% in March), the annual consumer price index for May (1.5% forecast vs. 1.9% in April).
Weak data will put pressure on the euro. Conversely, if the data prove to be better than the forecast, the euro will strengthen, and the EUR/USD pair will receive additional support.
The medium-term positive dynamics of the EUR/USD pair remains. Yesterday, on the daily chart of the pair, a 'hammer' was formed, which may indicate continuation of growth. In this case, the targets will be the levels of 1.1260 (local and annual maximum), 1.1280 (Fibonacci level of 23.8% of corrective growth from the lows reached in February 2015 in the last wave of global decline of the pair from 1.3900 level), 1.1340 (144-period moving average on a weekly chart).
Short positions can be viewed after the pair is consolidated below the support level of 1.1000. To cancel the upward trend of the EUR/USD can only return below the key support level 1.0850 (200-period moving average on the daily chart).
Support levels: 1.1155, 1.1120, 1.1100, 1.1020, 1.1000, 1.0950, 1.0850
Resistance levels: 1.1260, 1.1280, 1.1340
Trading recommendations
Sell Stop 1.1150. Stop-Loss 1.1210. Take-Profit 1.1120, 1.1100, 1.1020, 1.1000, 1.0950, 1.0850
Buy Stop 1.1210. Stop-Loss 1.1150. Take-Profit 1.1260, 1.1280, 1.1340
