EUR / USD - trading activity is low, we expect a tactical pullback to the support zone 1.23-1.2340

Yesterday, the market ignored weak data on European inflation and strong report of the American regulator (Beige Book), despite the seemingly so negative background for the European currency, the pair EUR / USD continued to slightly gain. Yesterday's trading session the pair closed at 1.2374, the highs of the day are located in the zone of almost 1.24.

Today, trading activity in this market is minimal, EUR / USD market is trading in a narrow range. In general, the situation did not change much in the last day of trading.

Since April 9, EUR / USD has been making steady attempts to break above 1.2400, after the pair took an important level of 1.23 by storm. As we can see, the price zone 1.2396-1.2413 acts as a strong resistance and does not allow the price higher.

It is worth noting that the fixation above April 17 high, (level 1.2413), will not be enough. Along with the breakdown of 1.2413, it is necessary to break through the resistance line 1.2554-1.2476. Only in this case it is possible to count on the subsequent growth to the important resistance levels 1.2476 and 1.2554, in order to re-test them.

Together with the zone 1.2396-1.2413 and the resistance line 1.2554-1.2476, the bearish uptrend is complicated by MACD  divergence. Taking into account that after the growth to 1.2413, the next upward momentum dried up at 1.2396, we do not exclude the option when current attempts at growth will cease, not reaching 1.2396. At the same time, while the market is above the bulls support zone 1.2300-1.2340, the mood on the market remains positive. We expect that the bulls will retreat and regroup forces into zone 1.2300-1.2340 for the next growth attempts.

Trading recommendations - purchases in the support zone 1.2300-1. 2340

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