Euro continues to strengthen its positions. Data on the Eurozone’s trade balance

The single currency continues to strengthen its positions against the US dollar during the European session. To a large extent, this dynamics is connected with profit taking by investors on long positions in relation to the US currency.

• As for the statistical data, in January the trade balance of the Eurozone amounted to 19.9 billion euros, which is lower than the previous value at the level of 23.2 billion euros.
• In turn, the trade balance excluding seasonal fluctuations – 3.3 billion euros, while analysts predicted a value of -6.5 billion euros.

Technical analysis: The EUR / USD  pair keeps a downward trend in the short term. I consider the nearest levels of resistance at the marks 1,2345, 1,2385. Support levels are considered in the marks 1,2245, 1,2200

Main recommendations: In connection with the beginning of the G20 meeting, as well as the expectation of an increase in the Fed’s interest rate, volatility in the market may be changeable. For EUR / USD, you can consider both sales and purchases from the above-mentioned levels of resistance and support with a potential movement of 50-75 points. The signal for the deal will be the formation of a candlestick on the H1 chart. More information about these signals you can learn from the series of articles “Analysis of Japanese candlesticks – the main candlestick models.”

Fig.  EUR / USD Graph. The current price is $ 1.2293.

Alexander Sivtsov