Following the prolonged decline, the Euro is slowly regaining positions against the USD. Today, the price is at the level of 1.0950. Prior to the release of the annual data on the US GDP, European currency is preferable for investments as experts predict the decline in the index from o.2% to -0.8%.
Now, let’s look at the technical indicators. Following the 10-day decline, the pair EUR/USD had reached the bottom limit of Bollinger bands; after that the pair rebounded; now it is forming a new ascending trend.
Support and resistance
The nearest support level is 1.0820 (lower moving average of Bollinger bands), resistance level is 1.1150 (middle MA of the indicator Bollinger bands).
Buy positions are advisable after breakdown of the level of 1.0990. When the price goes above 1.1150, the transactions shall be shifted into breakeven mode. Long-term target is at the level of 1.1350. As an alternative scenario it is possible to open short positions below the level of 1.0910 and exit points of 1.0820.