After a rapid downward trend, the EUR/USD pair entered a wide sideways consolidation. At the beginning of last week, the price dropped to a strong support level of 1.1430, where it reversed and began to strengthen. The main growth catalyst was the decline in demand for the US currency due to the publication of negative releases on inflation, the labor market, retail sales, and major US indices, while positive data on industrial production released in EU.
Today, US Industrial Production data will be published, and FOMC Meeting Minutes release is expected tomorrow. At the end of the week, special attention should be paid to EU inflation statistics.
Support and resistance
In the short term, a significantly overbought dollar reacts sharply to negative releases in major sectors of the economy and is falling. If the upward momentum of the instrument maintains, the pair may rise to the key resistance levels and local highs of the last five months at the levels of 1.1800, 1.1830, 1.1850.
On the daily chart, the technical indicators confirm a high probability of a reversal: the MACD volumes of short positions are decreasing, Bollinger bands are pointed sideways.
Resistance levels: 1.1600, 1.1665, 1.1690, 1.1730, 1.1775, 1.1800, 1.1830.
Support levels: 1.1550, 1.1515, 1.1500, 1.1430, 1.1400, 1.1370, 1.1300.
It is relevant to increase the volumes of long positions from the current level with the targets at 1.1800, 1.1830, 1.1850 and stop loss 1.1460.
Euro vs US Dollar
|Take Profit||1.1800, 1.1830, 1.1850|
|Support levels||1.1300, 1.1370, 1.1400, 1.1430, 1.1500, 1.1515, 1.1550, 1.1600, 1.1665 ,1.1690, 1.1730, 1.1775, 1.1800, 1.1830|
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