Last week the EUR/USD pair broke down the bottom border of an ascending channel at the level of 1.1280 and started falling.
This week the Euro recovered some losses after strong GDP data for the eurozone that exceeded forecastscame out. However, the pair fell again amid yesterday’s strong data from the US on the Labor Market Conditions Index and the Consumer Credit Change.
In the end of the week, important publications on Industrial Output for France, the Consumer Price Index for Germany, as well as the labour market and key US indices are due.
The pair, most likely, continues falling until the end of the week.
Support and resistance
The EUR/USD pair is falling within the downward channel towards the key level at 1.0950, the breakdown of which would allow the pair to fall to its local lows at 1.0545, 1.0480. If the price cannot overcome this level, the pair may resume the growth within a wide upward channel.
The pair broke down the middle MA of Bollinger Bands and moves towards the bottom MA at the level of 1.0950. MACD starts turning down.
Support levels: 1.1080, 1.1000, 1.0950, 1.0915, 1.0825, 1.0690, 1.0545, 1.0480.
Resistance levels: 1.1175, 1.1280, 1.1370, 1.1430, 1.1510, 1.1675,1.1750.
Open short positions from the current levels with the target at 1.0950 and stop-loss at 1.1210.
Pending buy orders can be placed at the level of 1.0950 with the target at 1.1675 and stop-loss at 1.0900.