This week, the pair EUR/USD has grown amid weakening of the American currency. On Thursday the pair gained 100 points and consolidated above the level of 1.1200, reaching the highs of March. At the moment, EUR/USD is traded at the level of 1.1205.
Eurozone celebrates Labor Day today; therefore, market volatility is expected to be low. However, price movement can be affected by business activity index in the manufacturing sector of the USA for April. According to the forecast this index can reach 52.0 points, which exceeds the previous value by 0.5 points. This fact can boost strengthening in the USD versus its major counterparts.
Support and resistance
On the four-hour chart the moving average lines with the periods of 20,50 and 100 are below the current price and directed upwards, which confirms positive trend for European currency. MACD histogram is in the positive zone; its volumes are increasing, which also confirms uptrend.
The nearest support level: 1.1116 –moving average with the period of 20. Next support level is 1.0795 – intersection of the moving average lines of 50 and 100.
Resistance level: 1.1359.
It is recommended to place buy orders with the target of 1.1300. As an alternative scenario short positions can be opened with the target of 1.1116.