Despite falling in the beginning of the week, at yesterday’s close the pair gained back the losses and is now trading at 1.1260.
The pair continues to be pressurised by the expectations about possible rate hike in the US, the news is due today at 9 pm (GMT +3). Economists expect the rate to remain at the current 0.25%. However, the USD will gain an additional support if the Fed tips about future rate increase.
Investors should also pay attention to the latest figures on the consumer price index, which are due today at 12 pm (GMT +3). Economists expect an increase by 0.3%, which would positively affect the Euro.
Support and resistance
The price is moving along the sideways channel, which is formed by two moving average lines with periods 20 and 100. The nearest resistance level is 1.1270; support level is at 1.1212.
Open short positions after the consolidation of the price below 1.1212 with the target at 1.1150—1.1100 and stop-loss at 1.1270.
Alternatively, open long positions at 1.1270 with take-profit at 1.1370 and stop-loss at 1.1200.