In the second half of November, the EUR/USD pair has been declining steadily.
Though Germany, the key economy of the eurozone, has released quite favorable macroeconomic data, the European currency still remains under pressure. Ahead of the Fed meeting, due in December, the demand for the US dollar keeps growing despite doubts about whether the Regulator will raise its interest rate before the year is out or not.
Today, special attention needs to be paid to labour market statistics, released in the US. Favorable indicators may add to pressure on the EUR/USD pair.
Support and resistance
Today, the pair declined to its local lows at 1.0595.
The price is expected to move down to 1.0525 and then, after a slight correction, to continue falling towards its local lows at 1.0460.
Technical indicators confirm downward dynamics. MACD indicates growing volumes of short positions. Moreover, the price is trading within a clearly outlined descending channel.
Support levels: 1.0575, 1.0525, 1.0460, 1.0410, 1.0350, 1.0300.
Resistance levels: 1.0595, 1.0650, 1.0690, 1.0710, 1.0775, 1.0820, 1.0860, 1.0920, 1.1020.
It is recommended to place pending sell orders at the levels of 1.0630, 1.0650 with the short-term target at 1.0460 and the medium-term target at 1.0200. Set stop-loss at 1.0720.