2016-10-05 15:47:32

Review and dynamics
It is expected that the rise in the pair EUR/USD will continue today. The pair EUR/USD can reach the upper line of the range at the level of 1.1285 (Fibonacci 23.6% after the decline from the highs of 2014).

Yesterday's news from Bloomberg News that the ECB may gradually reduce the program of bond purchase has triggered the rise in the Euro. Today, the pair EUR/USD continues to rise maintaining support level of 1.1205 (in the short-term the line of balance or ЕМА200 on 4-hour chart).

A new downward channel with the lower limit below the level of 1.0710 (annual lows) has been formed on the weekly chart.

The pair EUR/USD has been moving in the range of 1.1430 and 1.0975 for the past three months.

The narrower ranges, which have been formed in August, are between the levels of 1.1350 and 1.1045 and 1.1120 and 1.1285.

The median line or the line of balance is at the level of 1.1185 (ЕМА200, ЕМА144 on the daily chart).

Technical analysis
Two important US macro-economic indicators will become known today, which can affect movement direction in the USD and the Euro in the currency market. On 4- hour, daily and weekly charts the indicators OsMA and Stochastic give signals for long positions.

Investors are waiting for the Friday’s news: at 15:30 (GMT+3) the key US labor market for September will be released.

Breakout of the resistance level at 1.1285 and upper limit of the range at the level of 1.1350 may trigger further rise in the pair EUR/USD.

In case of breakdown of the support levels and the lower limits of the range at the levels of 1.1120 and 1.1045, the pair can start to decline.

The difference in the monetary policies of the US Fed and the ECB will put pressure on the pair EUR/USD in the medium term.

Support levels: 1.1205, 1.1185, 1.1120, 1.1045, 1.0975 and 1.0915.
Resistance levels: 1.1285, 1.1350, 1.1400, 1.1430, 1.1485 and 1.1535.

Trading tips
Sell Stop: 1.1190. Stop-Loss: 1.1225. Targets: 1.1120, 1.1045 and 1.0975.
Buy Stop: 1.1240. Stop-Loss: 1.1205. Targets: 1.1285, 1.1350, 1.1400, 1.1430, 1.1485 and 1.1535.

The nearest support level is 1.1205
The nearest support level is 1.1205

Indicators give buy signals
Indicators give buy signals