Source: PaxForex Premium Analytics Portal, Technical Insight
Germany's consumer prices could exceed the ECB's target by the end of this year thanks to tax hikes, ECB Governing Council member and Bundesbank President Jens Weidmann said Friday. "The reduced VAT, which expired at the end of last year, and the greenhouse gas tax, which went into effect on January 1. From today's perspective, the agreed consumer price index (EU) in Germany should rise above 3% before the end of the year.
EUR/USD, 30 min
Pivot: 1.2037
Analysis:
Provided that the currency pair is traded below 1.2060, follow the recommendations below:
- Time frame: 30 min
- Recommendation: short position
- Entry point: 1.2037
- Take Profit 1: 1.2020
- Take Profit 2: 1.2000
Alternative scenario:
In case of breakout of the level 1.2060, follow the recommendations below:
- Time frame: 30 min
- Recommendation: long position
- Entry point: 1.2060
- Take Profit 1: 1.2085
- Take Profit 2: 1.2105
Comment:
RSI is bearish and indicates a downtrend within a day.
Key levels:
| Resistance | Support |
| 1.2105 | 1.2020 |
| 1.2085 | 1.2000 |
| 1.2060 | 1.1980 |
EUR/USD, D1
Pivot: 1.2123
Analysis:
While the price is below 1.2190, follow the recommendations below:
- Time frame: D1
- Recommendation: short position
- Entry point: 1.2123
- Take Profit 1: 1.1925
- Take Profit 2: 1.1745
Alternative scenario:
If the level 1.2190 is broken-out, follow the recommendations below:
- Time frame: D1
- Recommendation: long position
- Entry point: 1.2190
- Take Profit 1: 1.2345
- Take Profit 2: 1.2410
Comment:
RSI shows the development of a downtrend in a medium term.
Key levels:
| Resistance | Support |
| 1.2410 | 1.1925 |
| 1.2345 | 1.1745 |
| 1.2190 | 1.1600 |
We also advise you to pay attention to the following currency pairs for intraday trading:
USD/CAD – long positions above 1.2680 with 1.2745 and 1.2765 targets as Take Profit. Alternative scenario - if the level of 1.2680 is broken-down, sell with the targets 1.2650 and 1.2625 as Take Profit.
GBP/USD - sell below 1.3875 with 1.3810 and 1.3790 targets as Take Profit. Alternative scenario - if the level 1.3875 is broken-out, buy with the TP 1.3905 and 1.3930.
AUD/USD – sell below 0.7770 with 0.7720 and 0.7700 targets as Take Profit. Alternative scenario - if the level 0.7770 is broken-down, buy with the TP 0.7785 and 0.7805.
