The EUR/USD pair gains support from weak macroeconomic data, released on Wednesday in the US. In particular, New Home Sales – an important measure of property market conditions – fell below the forecast to 494K. Market participants were also disappointed by data on Markit Services PMI. The index came in at 49.8 points that suggests an economic slowdown in the US.
Today, attention needs to be paid to data on Initial Jobless Claims and Durable Goods Orders, due in the US. If the indicators do not confirm the forecast, the USD would continue declining.
Support and resistance
Having fallen to its lows at the level of 1.0957, the pair started correcting up. The level of 1.1046 is seen as the key one a breakout of which would allow the price to grow to 1.1120. At the same time, consider the possibility to open short positions if the price turns down at the level of 1.1046.
The nearest support level is 1.0957.
The nearest resistance level is 1.1046.
Long positions can be opened after the breakout of the level of 1.1046 with the target at 1.1120.
Short positions can be opened after the price turns down at the level of 1.1046 with the target at 1.0957 and stop-loss at 1.1050.