Towards the end of the week, the Euro is holding its positions against the USD amid some doubts on the markets regarding the interest rate hike in the US in September. One of the reasons of such uncertainties is poor macroeconomic statistics coming out in the US.
Yesterday, the data on Retail Sales for July came out that showed an increase by 0.6%. However, Initial Jobless Claims for the week grew again from 269 to 274 thousands, which was worse than forecasts.
Support and resistance
Bollinger Bands on the daily chart is growing and the price range is widening, but the price is near its top border. Therefore, the indicator signals a possibility of a downward correction in the near future. MACD is growing and giving a buy signal. Stochastic remains in the overbought zone moving horizontally, thus pointing out to the possibility of the correction as well.
Support levels: 1.1129 (27 July high), 1.1100, 1.1035, 1.1000 (psychologically important level), 1.0970, 1.0914, 1.0900, 1.0865, 1.0808 (20 July low).
Resistance levels: 1.1150 (local high), 1.1200 (psychologically important level), 1.1245 (30 June high), 1.1279 (29 June high).
Long positions can be opened after the price consolidation above the levels of 1.1150, 1.1200 with targets at 1.1245, 1.1300 and stop-loss at 1.1100.
Short positions can be opened after the breakdown of the level of 1.1100 with the target at 1.1000 and stop-loss at 1.1150.