EUR/USD clawed back a part of lost positions after yesterday's fall. The dollar was supported on Tuesday after publication of statistics for US inflation. Core consumer price index grew by 1.7% year-on-year and by 0.2% month-on-month. Both indexes were higher than expected. Today, market participants are waiting for February's data on US durable goods orders that are forecast to decrease.
Support and resistance levels
Technical indicators are pointing to the end of a correctional upward movement on the H4 chart. Bollinger bands are diverging, confirming the continuation of a downward movement. The MACD histogram is located in the positive zone, but its volumes are reducing, pointing to sellers' growing influence.
The resistance levels are: 1.0975, 1.1030, 1.1085, and 1.1140.
Support levels: 1.0890, 1.0855, 1.0810, 1.0765.
The price is very likely to drop soon to a level of 1.0890, the moving average of Bollinger bands. If the level of 1.0890 is firmly broken, sellers will attempt to assault a level of 1.0855. In case of consolidation below the latter, the price may continue falling to 1.0810 and 1.0765.
Analyst at LiteForex Investments Limited