For the second week now, the pair is consolidating in a narrow range between the levels of 1.0985 and 1.0855, a breakout from where is possible in any direction.
Macroeconomic data that was published last week came out worse than forecasts in both the US and the eurozone. In the eurozone, Industrial Production for November shrank by 0.7%, while in the US Initial Jobless Claims grew to 284 thousands.
Today there are no important publications in the calendar that could affect pair’s dynamics. Tomorrow attention needs to be paid to data on the Producer Price Index in Germany and the Consumer Price Index in the US.
Support and resistance
The main scenario is the development of an upward trend.
Technical indicators on the daily chart signal growth in the price.
MACD histogram is in the negative zone and its volumes are falling. Kijun-sen line of Ichimoku crossed Tenkan-sen line from below, while the cloud turned over, thus indicating a change in the direction of the price.
Support levels: 1.0855, 1.0825, 1.0770, 1.0710, 1.0690, 1.0650, 1.6000.
Resistance levels: 1.0900, 1.0985, 1.1040, 1.1075, 1.1135, 1.1200, 1.1255, 1.1320.
Open long positions from current prices with targets at 1.1200, 1.1255, 1.1320 and stop-loss at 1.0750.