Yesterday, the American currency gained back some of its losses even amid the publication on not so much favorable US macroeconomic statistics. It happened partly due to the highly anticipated ECB meeting.
In August, ADP Employment Change index grew from 177K to 190K; however, the actual data failed to comply with the forecast of 200K. Factory Orders statistics were released at a disappointing level as well. In July, the indicator increased by only 0.4%, while a 0.9% gain had been expected.
Support and resistance
The middle MA of Bollinger Band on the daily cart is growing; the price range is narrowing actively. MACD is declining and keeping a weak sell signal. Stochastic has left the oversold zone and aims at further upward movement.
It is recommended to wait for clearer trading signals.
Support levels: 1.1200, 1.1153 (28 August local low), 1.1100, 1.1035, 1.1000 (psychologically important level), 1.0970, 1.0900, 1 .0847 (5 August low).
Resistance levels: 1.1245, 1.1300, 1.1360, 1.1400, 1.1500, 1.1560, 1.1621, 1.1713 (24 August high).
When the pair turns up near the current levels, for example at 1.1200, open long positions with targets at 1.1300, 1.1360, 1.1400 and stop-loss at 1.1100.
When the price breaks down the level of 1.1200, open short positions with targets at 1.1100, 1.1000 and stop-loss at 1.1300.