EUR/USD was confined to a range of 1.0713-1.1026 last week. A correction that followed the fall of the Euro at the beginning of the week turned into a new upward movement. The Euro carries on steadying today, and the bullish trend is likely to continue. While European banks are closed for holidays, the US is to release its business activity index, but expectations are quite dismal. If forecasts prove to be true, the pair will continue the upward movement to the upper border of the channel at 1.1100 and will probably break it. The next target will be a resistance level of 1.1350.
Support and resistance
Technically, the Euro is also likely to appreciate against the dollar. The chart is located in the upper Bollinger band, with moving averages directed upwards.
Support levels: 1.0782, 1.0471.
Resistance levels: 1.1100, 1.1350.
Long positions should be opened above 1.1100 with a target at 1.1350. Depreciation of the Euro will suggest an alternative scenario of selling below 1.0782 with a target at 1.0471.