FX.co ★ Technical analysis of EUR/USD for April 16, 2014

Germany is facing a broad-based, domestic-driven economic upswing, official data indicated yesterday, with forecasted growth hitting 1.8 per cent this year and 2 per cent in 2015. After growth of just 0.4 per cent in 2013, Federal Minister for Economic Affairs and Energy said he was optimistic the “solid upturn” in the economy would not be clouded by uncertainty in Ukraine. On the other hand, Germany has some of the biggest links to Russia.

The pair has been in a down trend from 1.396 levels. In Asia's trading session the pair is trading at 1.3816. It is holding the support at 1.3788 (200EMA, H4 chart). The level of 1.3780 is very crucial for bulls to hold. Until it holds, the pair will be in a pull back zone up to 1.3834, above this, 1.3863 and 1.3906 are possible for intraday and BTST. Once the pair breaks the 1.3780, it will drift all the way to 1.3762 and 1.3740 in intraday trading. Below 1.3740, it will extend its fall up to 1.37 and 1.3673. The intraday support exists at 1.38 and 1.3780 levels.

Recommendation- 1.3780 is a key level

Safe traders-

Buy above 1.3834 with targets at 1.3863, 1.3876 and 1.3906

Sell below 1.3780 for targets at 1.37 and 1.3673

Risky traders - buy with sl 1.3780, cmp 1.3818