The pair has been trading within a narrow upward range for quite a long time, growing slightly and then declining back to the key support levels. Last week, when US currency was weakening and eurozone released positive statistics, the pair strengthened significantly but then a decline followed.
This week, the pair continues trading down affected by growing demand for US dollar ahead of FOMC minutes release. Moreover, today, special attention should be paid to the publication of US Consumer Price Index.
Support and resistance
At present, the pair is trading at 1.1037. If the US releases positive data, the pair may decline to the key support level of 1.0950, which is the lower border of the upward channel. At the same time, US dollar is unlikely to strengthen significantly, as the demand for the euro is growing. In the medium term, the pair continues moving within the upward channel to the target levels of 1.1210, 1.1280, 1.1400.
Support levels: 1.0950, 1.0915, 1.0825, 1.0690, 1.0545, 1.0480.
Resistance levels: 1.1080, 1.1175, 1.1210, 1.1280, 1.1400, 1.1430.
Open long positions from the current level or place pending buy orders from 1.0950 with the medium-term target at 1.1200 and the long-term target at 1.1400. Set stop-loss at 1.0900.