Since mid-October, the EUR/USD pair has been declining amid growing demand for the USD and weak EU macroeconomic statistics. This week, Germany's Services PMI came in below the forecast. Moreover, EU Retail Sales declined by 0.1%, while a 0.2% growth had been expected.
Today, despite of a fall to -1.1% in Germany's Industrial Production indicator against a +0.5% forecast, the EUR/USD pair managed to strengthen. Market participants are waiting for Non-farm Payrolls and Unemployment Rate statistics, due in the US today.
Support and resistance
Today, the USD may get additional support if the US releases favorable labor market indicators. At the same time, the EUR is strongly oversold, thus, any US negative statistics could be an impetus for a growth in the EUR/USD pair.
Support levels: 1.0860, 1.0835, 1.0820, 1.0775, 1.0660, 1.0585, 1.0550, 1.0460.
Resistance levels: 1.0900, 1.1020, 1.1075, 1.1135, 1.1200, 1.1280, 1.1320, 1.1385, 1.1450, 1.1540.
It is recommended to open long positions from the current level with targets at 1.1075, 1.1200 and stop-loss at 1.0800. At the same time, place a pending short order at the level of 1.0800 with targets at 1.0550, 1.0460 and stop-loss at 1.0900.