2016-10-21 12:28:33

Review and dynamics
At today's Asian session sales in the Euro continue after yesterday’s sharp decline caused by the comments of ECB President Mario Draghi, who said that bond purchase program may be continued and QE program in Eurozone will not be terminated, contrary to the recent information spread by mass media.

At the beginning of the European session, sales in the Euro continued, and the pair EUR/USD has reached new 7-month lows

Since the beginning of this month the pair EUR/USD has been going down. EUR/USD has broken down important support levels of 1.1170 (ЕМА200 on the daily chart) and 1.1120 (lower limit of the range between the levels of 1.1285 (Fibonacci 23.6% after the decline from the highs of 2014) and 1.1120 (lows of September).

The price has also broken down the lower limit of the broader range between the levels of 1.1045 (lows of August) and 1.1350 (highs of August) at the level of 1.1045.

Support level of 1.0975 (lows of July) is been also broken down and pressure on the pair EUR/USD continues.

On the weekly chart the EUR/USD pair is declining in a descending channel with the lower limit near support level of 1.0600 (lows of November 2015).

Technical analysis
On 4 hour, daily and weekly charts the indicators OsMA and Stochastic give sell signals; on the monthly chart the indicators also give signals for short positions.

The pair EUR/USD is still under pressure amid strong fundamental background.

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

The pair may go down to the target levels of 1.0710 and 1.0600.

If the pair goes above the level of 1.0975 the rise can continue to the levels of 1.1045 and 1.1120. After breakout of the level of 1.1170, medium-term long positions can be advisable.

Support levels: 1.0865, 1.0825, 1.0710 and 1.0600.
Resistance levels: 1.0915, 1.0975, 1.1045, 1.1120, 1.1170, 1.1205 and 1.1285.

Trading tips
Sell on the market. Stop-Loss: 1.0920. Targets: 1.0865, 1.0825, 1.0710 and 1.0600.
Buy Stop: 1.0920. Stop-Loss: 1.0880. Targets: 1.0975, 1.1045, 1.1120 and 1.1170.

Long-term target is at the level of 1.0600
Long-term target is at the level of 1.0600

Breakdown of support level
Breakdown of support level