Review and dynamics
After nearly 10 days of growth since November 9, yesterday the USD corrected in the foreign exchange market. Investors closed long positions on the USD and took profits.
With the opening of today's European session the USD has continued to decline. The pair EUR/USD has continued yesterday's growth at the European session and reached the level of 1.0660.
Nevertheless, the pair EUR/USD remains in the descending channel on the weekly chart with the lower border near the level of 1.0600.
The pair EUR/USD is under pressure from large-scale strengthening in the USD and weak European macro-economic statistics. The pair EUR/USD had broken down support level of 1.0710 (lows of December 2015, ЕМА200 on the hourly chart) and reached important support level of 1.0600 (the lower line of the descending channel on the weekly chart).
On the daily, weekly and monthly charts the indicators OsMA and Stochastic give sell signals, indicating strong downside momentum. However, on the hourly and 4-hour charts the indicators give signals for long positions, showing high probability that upward correction will continue.
However, pressure on the pair EUR/USD continues and it is advisable to open short positions.
The rise in the pair EUR/USD can be just the correction.
Support level: 1.0600.
Resistance levels: 1.0710, 1.0795, 1.0840, 1.0900, 1.0975, 1.1050 and 1.1110.
Sell on the market. Stop-Loss: 1.0665. Targets: 1.0600 and 1.0550.
Buy Stop 1.0665. Stop-Loss: 1.0610. Targets: 1.0710, 1.0795, 1.0840, 1.0900, 1.0975, 1.1050 and 1.1110.
In the downtrend
Indicators give BUY signals