Last week, the European currency gained significant investor support despite mixed EU macroeconomic indicators. Germany released negative Current Account and Trade Balance statistics. In France, on the contrary, favorable Industrial Output data was published.
Today, Japanese banks are closed due to the national holiday and no important macroeconomics statistics are released in the eurozone. Thus, the volatility is likely to remain low, but the pair tends to continue strengthening amid growing demand.
Tomorrow, it is worth noting the publication of Consumer Confidence Index for Japan and Consumer Price Index and Economic Sentiment for the eurozone.
Support and resistance
The pair is trading within a wide downward range towards the upper border 137.40. In the short term, the price is likely to strengthen by 70-80 points and then decline to the key support levels of 133.50, 132.60, 131.20.
On the daily chart, the price reached the upper MA of Bollinger Bands indicator and, thus, should turn down and decline to the middle 135.35 and the lower 133.50 MAs.
Support levels: 136.40, 135.70, 135.25, 134.30, 133.50, 133.10, 132.60, 131.70, 131.20.
Resistance levels: 136.80, 136.95, 137.40, 138.00, 138.50, 139.00, 140.10.
Short positions can be opened from the levels of 137.40, 138.00 with targets at 133.50, 131.20 and stop-loss at 138.70.