Yesterday, as well as throughout the whole week, the European currency has been growing against the American dollar. Opening price at the beginning of the week was 1.0601, while by Friday morning Euro has reached the level of 1.0770-1.0780.
Today, movement in the pair EUR/USD will depend on important macro-economic releases. US consumer price index can trigger the rise in the USD in case favourable forecasts prove to be correct. However, today’s main event is the meeting of Eurogroup under the authority of European Monetary Union. Among meeting participants will be President of Eurogroup , finance ministers of the member-countries, Commissioner for Economic and Monetary Affairs and the head of ECB.
Technical analysis shows that in the last few days the price chart has repeatedly crossed the upper line of Bollinger bands, which indicates possibility of slight correction.
Support and resistance
Support and resistance are the highs and lows, which have been the most frequently recorded in the past three weeks.
Support levels: 1.0743, 1.0660 and 1.0580
Resistance levels: 1.0860, 1.0930 and 1.1020
Buy positions can be opened above the level of 1.0825 with the target of 1.0900. In case of downward movement it makes sense to open sell positions below the level of 1.0743 and take profit of 1.0660.