The Euro is strengthening in the beginning of the week but still remains under pressure from a number of factors.
The pair negatively reacted to commentaries by the Managing Director of the IMF Christine Lagarde who stated that the world GDP growth for the next couple of years is hard to predict. The growth would remain above 3% but recovery is sluggish.
The Euro is supported, on the other hand, by lowered speculations regarding the interest rate hike in the US.
Support and resistance
Bollinger Bands on the daily chart is moving horizontally. MACD is growing and giving a weak buy signal. Stochastic is also growing and approaching the overbought zone, thus indicating the weakening of the bullish impulse.
The indicators recommend opening long positions in the short-term.
Support levels: 1.1245 (local low), 1.1200, 1.1153, 1.1100 (3 and 23 September lows), 1.1000 (psychologically important level).
Resistance levels: 1.1300 (local high), 1.1360, 1.1400, 1.1459 (18 September high), 1.1500, 1.1560, 1.1621.
Long positions can be opened after the breakout of the level of 1.1282 with the target at 1.1430 and stop-loss at 1.1220. Validity – 1-2 days.
Short positions can be opened after the breakdown of the level of 1.1220 with the target at 1.1140 and stop-loss at 1.1250. Validity – 2-3 days.