Today we cannot expect the euro to strengthen against the dollar after Friday's decline. Data released on Friday in the US showed the strength of the US economy and supported investors' optimism. Today US stock exchanges do not work, as the US celebrates President's Day. We also do not expect the release of any strong macroeconomic indicators from the eurozone.
The meeting of the Eurogroup is among the expected events for today.
The technical picture for our pair is in favor of the reserve currency. Last week quotes approached three-year highs for the euro, where they found a strong level of resistance. Now the picture is similar to the reversal model from the level of 1.2550. At the moment, the level of support will be around 1.2390 and when it breaks we can expect a further decline in the pair.
The RSI and MACD indicators show a downward movement and the price is squeezed in the corridor between the sliding MA (21) and MA (86).
We will look for points to enter short positions when crossing the support level. Our goals are 1.2320 and 1.2240.
