Current trend

On Tuesday European currency tried to regain losses of Monday; however the pair EUR/USD got stuck in the range of 1.0736-1.0734 failing to determine future movement direction.

Today, volatility in the pair EUR/USD will be affected by European consumer confidence index and US statistics on existing home sales. Forecasts for both indices are positive, which can strengthen the pair in the morning and cause downward movement in the afternoon.

On the four-hour chart the price is between the middle and the bottom lines of Bollinger bands. Given the current situation it is likely that the pair will go to the bottom line. However, the bands are narrowing, which can indicate the reversal.

Support and resistance

Support and resistance are at the highs and lows, 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

Trading tips

Buy orders can be placed above the level of 1.0743 with the target of 1.0860. In case of the reverse direction it is recommended to open sell positions below the level of 1.0660 with the target of 1.0515.

EUR/USD: review and forecast

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