On Thursday, ECB monetary policy decision pushed the EUR up, but then a downward correction followed. Demand for the EUR was declining, investors were opening short positions at the peak levels. However, on Monday, the pair resumed its growth amid negative macroeconomic statistics, released in the US. At the same time, the EUR gained support from EU GDP data for the third quarter – the indicator confirmed the forecast. Demand for the EUR continued growing despite Germany's negative Current Account and Trade Balance statistics.
Support and resistance
The demand for the EUR is growing, and the pair tends to strengthen amid certain weakness in the USD. Nevertheless, the trend in the EUR/USD pair remains downward; therefore, the higher the price moves, the more volumes of short positions will grow.
Technical indicators confirm that the price will strengthen slightly and then decline. On the weekly chart, MACD indicates that volumes of short positions have resumed their growth. The middle MA of Bollinger Bands is at the level of 1.1075, and the price is unlikely to break it out.
Support levels: 1.0920, 1.0860, 1.0820, 1.0775, 1.0710, 1.0690, 1.0650, 1.0600, 1.0570, 1.0525.
Resistance levels: 1.0975, 1.1020, 1.1075, 1.1135, 1.1165, 1.1200, 1.1250.
Pending short orders can be place at the levels of 1.1050, 1.1075 with the target at 1.0600 and stop-loss at 1.1160.