Last week the EUR/USD pair continued falling and is currently trading at 7-month lows.
The pair remains under pressure due to opposite expectations of investors regarding the Euro and the US Dollar. According to the majority of forecasts and quite strong macroeconomic data from the US, the Fed could start hiking rates as soon as at its December meeting. At the same time, the ECB is considering additional stimulus measures for the economy of the eurozone by expanding its QE program.
Support and resistance
Bollinger Bands on the daily chart is moving down while the price range is widening. MACD is growing and giving a weak buy signal. Stochastic is near the oversold zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 1.0565 (25 November low), 1.0520, 1.0461 (13 March low), 1.0400.
Resistance levels: 1.0624 (local high), 1.0673, 1.0706, 1.0762 (19 November high), 1.0808, 1.0843, 1.0900, 1.1000, 1.1100 (28 October highs), 1.1153.
Short positions can be opened below the level of 1.0565 with targets at 1.0500, 1.0460 and stop-loss at 1.0600. Validity – 2-3 days.
Long positions can be opened after the breakout of the level of 1.0615 (with the appropriate indicators signals) with targets at 1.0675, 1.0700 and stop-loss at 1.0575. Validity – 1-2 days.