Yesterday, the Euro gained against the USD.
The Dollar was weakening amid labor market data from the US. According to the ADP, the number of new jobs created in the economy in July amounted to 185 K, which was a lot worse than forecasted 215 K. The news significantly lowered the expectations of the interest rate hike by the Fed in September.
At the same time, the Euro was pressured by the data on Retail Sales from the eurozone that showed a decrease by 0.6% (forecasted a drop by 0.3%).
Today, the Initial Jobless Claims figure is due in the US. An increase to 273 thousands is expected.
Support and resistance
On the 4-hour chart, MACD remains above the signal line forming a buy signal. Stochastic lines are heading up, which also signals of a possibility of an upward movement.
Support levels: 1.0847, 1.0800, 1.0700.
Resistance levels: 1.0934, 1.0955, 1.1115, 1.1213.
Open long positions after the breakout of the level of 1.0940 with targets at 1.0995, 1.1115 and stop-loss at 1.0895.
Short positions can be opened after the breakdown of the level of 1.0845 with targets at 1.0805 и 1.0750.