Yesterday the EUR/USD pair grew and gained more than 400 points in a single day.
The growth in the pair was due to disappointing results of the ECB meeting where the regulator decided to extend existing QE program until March 2017 and leave its current asset-purchasing facility at 60 billion Euro a month. However, markets expected expansion of the program.
Today data on the Nonfarm Payrolls is due in the US. This is the key data that the Fed will be considering when making its interest rate decision. If the actual figure exceeds its forecasts of 200 thousands the pair will decline.
Support and resistance
There is a high possibility that the pair will not be able to breakout the significant resistance level at 1.1016.
The nearest support levels is at 1.0896.
The nearest resistance level is at 1.0981.
Short positions can be opened from the level of 1.0860 with targets at 1.0770, 1.0680 and stop-loss at 1.0920.
Long positions can be opened after the breakout of the level of 1.0950 with targets at 1.0981, 1.1000 and stop-loss at 1.0930.