After an abrupt rise on Friday, this week the pair EUR/USD is moving down. Due to the lack of macroeconomic releases investors close long trades. Tomorrow the movement of the pair will be affected by such major releases as German Unemployment Change (9:55 GMT+2) and Eurozone Unemployment Rate (11:00 GMT+2). Both indicator can decrease and support European currency, At the end of the day investors should pay attention to the US Consumer Confidence index (17:00 GMT+2).
Support and resistance
On the four-hour chart Bollinger bands are getting wider, confirming future downward trend. MACD histogram is in negative zone but still too close to the zero line, reflecting flat market. Today high volatility is unlikely.
Resistance levels: 1.0870, 1.0920, 1.0985, 1.1050.
Support levels: 1.0800, 1.0770, 1.0730, 1.0670.
The continuation of the downward trend is the most probable scenario. Sell trades can be opened at current price with target around 1.0800. The breakdown of 1.0800 will allow the pair to go further down to the level of 1.0770. As soon as the price consolidates above 1.0920, long trades should be opened with targets at 1.0985.