Current trend

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.

Trading tips

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.

EUR/USD: ahead of US labor market statistics




The material published on this page is produced by LiteForex and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC; furthermore it has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research.



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