Yesterday, the European currency has grown against the American dollar. From the opening price of 1.0927 the pair went to 1.1150 by the end of the day. At the moment Euro is at the level of 1.1180 and continues to rise.
Today’s economic calendar contains some news, which can influence on the volatility in the pair EUR/USD. The main event of the day is the interest rate decision by ECB and press-conference of the ECB’s Chairman. Both options, either the increase in the interest rate or maintain it at the previous level can help attract investors, which will be contribute to strengthening in the European currency. Important American statistics will be also known today, including the number of employed (ADP) for May and business activity index in the service sector (ISM).
Support and resistance
Technically, on the daily chart the price has broken down the middle line of Bollinger bands and continues to go up to the top line.
The nearest support level is 1.1135 (middle line of Bollinger bands). Support levels are 1.1460 (upper line of Bollinger bands) and 1.1350.
Today, upward movement in the pair is the most probable. Therefore, orders to buy can be placed when the price exceeds the level of 1.1350 and take profit at 1.1460. As an alternative scenario it is possible to open short positions below the level of 1.1135 with the target of 1.0920.