Scenario

Timeframe - Intraday

Recommendation - BUY STOP

Entry Point - 1.1310

Take Profit - 1.1340, 1.1380

Stop Loss - 1.1280

Key Levels - 1.1299, 1.1235

Alternative scenario

Recommendation - SELL STOP

Entry Point - 1.1235

Take Profit - 1.1190

Stop Loss - 1.1255

Key Levels - 1.1299, 1.1235

Current trend

President of ECB Mario Draghi said at a European Parliament hearing that the economy of the eurozone is gradually recovering, but still it might face some serious difficulties in the event of a British exit from the EU. At the same time, he stated that the central bank has done all preparation it can to overcome possible contingencies.

However, some experts are skeptical about measures applied by the European regulator. Despite all the steps it has taken, inflation in the region remains below 2%. Thus, any changes in interest rates seem unlikely in the nearest future that might have a negative impact on the European currency.

Support and resistance

The nearest support level is at 1.1235.

The nearest resistance level is at 1.1299.

Trading tips

Long positions can be opened after the level of 1.1300 is broken out with targets at 1.1340, 1.1380 and stop-loss at 1.1280.

Short positions can be opened from the level of 1.1235 with the target at 1.1190 and stop-loss at 1.1255. Moreover, pending sell orders can be placed at the level of 1.1295 with targets at 1.1235, 1.1190.