Yesterday, the EUR/USD continue declining despite of weak Industrial Production statistics, released in the US. Today, the pair is gaining back its losses, but expectations of FOMC minutes may halt the growth in the pair.
Market participants are turning their attention back to the difference between Fed and ECB monetary policies. While the ECB is getting more likely to extend its quantitative easing programme at the 3 December meeting, the EUR will remain under pressure, in particular against the USD.
Support and resistance
On the daily, weekly and monthly charts, OsMA and Stochastic still recommend short positions, while on the 4-hour chart, they are turning to long positions.
Thus, the pair may strengthen during an upward correction towards 1.0745 (EMA50 on the 4-hour chart), 1.0790 (the upper border of the downward channel on the 4-hour chart), 1.0820, 1.0860 (May, July lows) and 1.0910 (EMA144).
Support levels: 1.0650, 1.0600, 1.0500.
Resistance levels: 1.0700, 1.0745, 1.0800, 1.0820, 1.0860, 1.0910, 1.1050.
Short positions can be opened below the level of 1.0630 with targets at 1.0570, 1.0500 and stop-loss at 1.0670.
Long positions can be opened in case of the breakout of the level of 1.0690 with the target at 1.0760 and stop-loss at 1.0640.