The EUR/USD pair was falling since the end of last week and lost more than 400 points.
The pair was pressured by statements from the ECB President regarding a possibility of an extension of the current QE program for the eurozone economy in the near future, as well as the Fed Interest Rate Decision, where regulator’s Chair Janet Yellen did not dismiss the possibility of interest rate increase in December.
Today the pair was supported by strong labour market data from the eurozone that showed the Unemployment Rate reduction to 10.8%, and on the Consumer Price Index that grew by 1% against the previous year.
Support and resistance
The pair is moving along a wide ascending channel. The price is expected to fall to the lower border of the channel, and growth will resume after towards the levels of 1.1200, 1.1215.
At the same time, if the Fed decides not to increase interest rates this year, the pair could grow to the levels of 1.1400, 1.1450.
Support levels: 1.1000, 1.0920, 1.0860, 1.0820, 1.0775, 1.0710, 1.0660.
Resistance levels: 1.1020, 1.1075, 1.1135, 1.1165, 1.1215, 1.1255, 1.1280, 1.1320, 1.1385, 1.1400, 1.1450.
Pending buy orders can be placed at the levels of 1.0920, 1.0900 with targets at 1.1215, 1.1450 and stop-loss at 1.0790.