Today the EUR/USD pair continued falling after the publication of poor data on the ZEW Survey – Economic Sentiment for the eurozone.
Investor interest for the Euro remains very low due to a number of macroeconomic factors such as falling exports, low inflation in the eurozone amid declining oil prices and others. At the same time, the US Dollar continues strengthening amid increased expectations of an interest rate hike in December and strong macroeconomic data that lately comes out form the US.
Today attention needs to be paid to publications from the US where data on the Consumer Price Indices and Industrial Production is due.
Support and resistance
The pair is trading near April lows and continues falling towards the level of 1.0460 (beginning of March lows), a breakdown of which would allow the pair to fall to 1.0250, 1.0000.
Technical indicators signal a fall continuation. MACD’s histogram is in the negative zone and its volumes are growing. The bottom MA of Bollinger Bands fell to the level of 1.0550.
Support levels: 1.0650, 1.0585, 1.0525, 1.0460, 1.0400, 1.0370, 1.0250, 1.0000.
Resistance levels: 1.0675, 1.0710, 1.0775, 1.0830, 1.0860, 1.0905, 1.1020, 1.1050, 1.1075, 1.1135, 1.1200.
Open short positions from current prices with targets at 1.0460, 1.0000 and stop-loss at 1.0790.