Despite not so positive US macroeconomic releases, the European currency resumed its decline, stepping back from Monday’s local highs. Many market participants have taken “wait-and-see” attitude ahead of the Fed meeting, due on Thursday.
On Tuesday, Retail Sales and Industrial Production statistics were released in the US. In August, Retail Sales climbed 0.2% against a 0.7% gain in July and 0.3% forecast. After a recent 0.9% growth, Industrial Production shrank by 0.4%, while a 0.2% decline had been expected.
Support and resistance
Bollinger Bands indicator on the daily chart is directed horizontally, and the price range remains unchanged. MACD is trying to turn down and form a sell signal. Stochastic, having left the overbought zone, is declining.
The indicators recommend considering short positions or wait for a clearer trading signal.
Support levels: 1.1245, 1.1245, 1.1200, 1.1153, 1.1100 (near 3 and 4 September local lows), 1.1035, 1.1000 (important psychological level).
Resistance levels: 1.1300, 1.1360, 1.1400, 1.1400, 1.1560 (26 August high), 1.1621, 1.1713 (24 August high).
Long positions can be opened after the breakout of the levels of 1.1360, 1.1400 (with the appropriate indicators signals) with targets at 1.1500, 1.1560 and stop-loss at 1.1245.
Short positions can be opened after the breakdown of the levels of 1.1245, 1.1200 with the target at 1.1100 and stop-loss at 1.1300.Publication source