On Friday, the EUR/USD pair tested the key support level and the bottom border of the ascending channel at 1.1175, and slightly corrected upwards after. On Monday, the pair continued growing amid strong Retail Sales data from Germany and the Consumer Price Index for the eurozone, and poor Purchasing Managers’ Index figure from the US.
Today, labour market data and key indices for the eurozone countries were published. Despite a reduction in the Unemployment Rate to 10.9%, the Euro fell amid weak Markit Manufacturing PMI’s for France and the eurozone.
Today, pay attention to the Construction Spending and Manufacturing PMI’s from the US. During the week, negative statistics for the US labour market are expected, which could provide an additional support to the pair. However, prior to the FOMC Minutes, an increase in demand for the USD is possible.
Support and resistance
The pair is trading within an upward channel and therefore a growth towards the target levels of 1.1430, 1.1510 is expected. The main indicators are confirming the pair strengthening in the short-term.
Support levels: 1.1280, 1.1175, 1.1080, 1.0950, 1.0915, 1.0825, 1.0690, 1.0545.
Resistance levels: 1.1370, 1.1430, 1.1510, 1.1675, 1.1750.
Open long positions from the current levels with targets at 1.1430, 1.1510 and stop-loss at 1.1130.