The European currency slowed down its timid growth against the US Dollar. On Tuesday, the pair was trading mixed. The American currency managed to get some support from US releases, in particular December’s data on Consumer Confidence.
No high volatility is expected during the last days of this year; however, attention needs to be paid to ECB Monetary Policy Meeting Accounts, due on Thursday. Moreover, Initial and Continuous Jobless Claims statistics are released in the US tomorrow.
Support and resistance
Bollinger Bands indicator on the daily chart has turned horizontally. The price range remains unchanged and wide enough for the current volatility. MACD is declining and keeping a weak sell signal. Stochastic is directed down.
It is recommended to wait for clearer trading signals
Support levels: 1.0900, 1.0867 (23 December low), 1.0795 (7 December low), 1.0762, 1.0706, 1.0673, 1.0638.
Resistance levels: 1.1000, 1.1059 (15 December high), 1.1100, 1.1153 (22 October level), 1.1200, 1.1245.
Long positions can be opened after the pair turns up at the level of 1.0900 and overcomes 1.0950 (with appropriate indicators signals) with the target at 1.1000 and stop-loss at 1.0920. Validity – 1-3 days.
Short positions can be opened after the breakdown of the level of 1.0900 with targets at 1.0855, 1.0800 and stop-loss at 1.0930. Validity – 2-4 days.