24.03.2014 - Potential of growth of euro is very low
The quotes of euro continue to move below the lower boundary of the rising channel. At the moment, the price has reached the level of 1.3800 and is consolidating around this mark. From a technical point of view, in order to continue the growth the price needs to return to the rising channel, but in such case the growth is limited by the resistance levels at 1.3850 and 1.3900. Now, more probable is the resumption of price decline of EUR/USD. Objectives while reducing will be at the levels of 1.3750, 1.3700 and 1.3640. A signal to sell will be price fixing below 1.3750. The course of trading today will be affected by data on the manufacturing PMI and service PMI of the Eurozone (09:00 GMT). Considering the reduction of quantitative easing program in the U.S. and the possibility of early raise of the rates by the Fed, we confirm the negative long-term outlook for the euro.