Review and dynamics
Trading is sluggish in the financial markets this Monday amid anticipation of the important decisions scheduled for this week. Trading volume is low.
On the daily chart the pair EUR/USD is in the middle of the descending channel, on the weekly chart the pair is at the lower line of the ascending channel, close to the level of 1.0970.
On the daily and weekly charts the indicators OsMA and Stochastic give signals for short positions; on the monthly chart the indicators are also reversing toward the sell positions.
On the weekly chart the lower limit of the ascending channel crosses the level of 1.0970, the upper limit of the channel is close to the 1.1785 level (Fibonacci 38.2%to the last wave of decline from the highs of 2014, ЕМА144 on the weekly chart). Breakout of the lower limit of the channel and the level of 1.0970 (lows of July) can trigger further decline in the pair EUR/USD with the .targets at the levels of 1.0915, 1.0865, 1.0800 and 1.0750.
In case of an alternative scenario the pair EUR/USD will go up to 1.1175 (ЕМА200, ЕМА144 on the daily chart).
However, fundamental factors are in favor of the decline in the pair EUR/USD.
Support levels: 1.0970, 1.0915, 1.0865, 1.0800 and 1.0750.
Resistance levels: 1.1025, 1.1100, 1.1130, 1.1175, 1.1200, 1.1285, 1.1300, 1.1400, 1.1430, 1.1485 and 1.1535.
Sell on the market. Stop-Loss: 1.1035. Targets: 1.0915, 1.0865, 1.0800 and 1.0750.
Buy Stop: 1.1040. Stop-Loss: 1.0980. Targets: 1.1100, 1.1130 and 1.1175.
At the lower limit of the ascending channel