Yesterday the pair slightly grew against a backdrop of positive data on French and Italian manufacturing production volumes. Then unfavourable macroeconomic data was released in the US: the small business optimism index dropped to 97.9 points, and new non-farm payrolls reduced to 5.03 million.
Today, market participants are waiting for the results of the Eurogroup meeting that will be held at 19:30 (GMT+2). The meeting will cover the questions related to the Greek situation and possible solutions to the Greek current economic crisis. Market participants do not hurry to open big volume positions ahead of the Eurogroup meeting.
Support and resistance levels
Bollinger bands are not producing any clear signals on the H4 chart. The MACD histogram is situated in the negative zone and is moving along the zero line. Thus, MACD is indicating relative market calmness.
Resistance levels: 1.1340, 1.1360, 1.1400.
Support levels: 1.1300, 1.1270, 1.1220.
Selling positions should be opened with the nearest target at about 1.2220 after a powerful resistance level at 1.1270 has been broken. Consolidating above a level of 1.1340 will signal a beginning of an ascending movement. In this case, bulls will attempt to assault a level of 1.1360.
Analyst at LiteForex Investments Limited