Review and dynamics
The pair EUR/USD has been grown since the beginning of this week. Within three days the pair returned to resistance levels of 1.1155 (ЕМА144) and 1.1170 (ЕМА200 on the daily chart) due to strong US labor market data.
With the opening of today's trading the pair EUR/USD has gown due to weakening in the USD in the currency market.
However, further growth may be stopped at the resistance level of 1.1170. The price has broken resistance level of 1.1120 (ЕМА200 on 4-hour chart); positive dynamics in the pair EUR/USD continues.
On 4-hour chart the indicators OsMA and Stochastic suggest to open long positions; on daily and weekly charts the indicators also give signals to buy.
However, the price today can only reach resistance levels of 1.1170 (ЕМА200 on the daily chart) and 1.1190 (upper limit of the descending channel on the daily chart).
Breakout of the level of 1.1225 (highs of August) may trigger further growth with the target of 1.1285 (Fibonacci 23.6% to the decline from the highs of 2014). If the price consolidates above the level of 1.1285, the rise can continue with the targets of 1.1430, 1.1485 and 1.1535.
In case of the alternative scenario, the pair will break down support level of 1.1120 (ЕМА200 on 4-hour chart) and continue to decline in the descending channel on the daily chart (with a lower limit near the level of 1.0710). After that the pair may break down support levels of 1.1045 (lows of August) and 1.0975 (the lower line of the ascending channel on the weekly chart and the lows of July) and 1.0915 (the lows of June) and 1.0865.
Fundamental factors are favourable for the decline in the pair EUR/USD; therefore, significant rise in the pair is unlikely.
Support levels: 1.1120, 1.1045, 1.0975, 1.0915, 1.0865, 1.0800 and 1.0750.
Resistance levels: 1.1170, 1.1190, 1.1225, 1.1285, 1.1300, 1.1400, 1.1430, 1.1485 and 1.1535.
Sell Stop: 1.1110. Stop-Loss: 1.1150. Targets: 1.1045, 1.0975 and 1.0915.
Buy Stop: 1.1160. Stop-Loss: 1.1110. Targets: 1.1170, 1.1190, 1.1225, 1.1285, 1.1300 and 1.1400.
The rise in the pair is prevented by the level of 1.1170
Indicators suggest to open long positions