Since the last week the currency pair EUR/USD has been going down. This week the pair Euro started at the level of 1.0601 and then fell to 1.0550. It is expected that within 24 hours the decline in Euro against the USD will continue.
Favourable forecast of the US retail sales demonstrates than this assumption is likely to be correct. Index of the total consumer spending can reach the level of 1.1%, which will be much better than the previous value of (–0.6%).
Support and resistance
Given macro-economic forecast, technical indicators show that the rise in the USD is the most feasible scenario. Bollinger bands are directed downwards, the price chart is moving along the bottom line.
Support levels: 1.0500, 1.0450 and 1.0400.
Resistance levels: 1.0590 and 1.0610.
A better option, taking into advantage the decline in Euro, is to open sell positions below the level of 1.0550 with the target of 1.0450. Alternative scenario is to place buy orders at the level of 1.0610 with the target of 1.0680.