In the end of the last week, the EUR/USD pair continued falling and returned to its local lows.
The decline in the pair came as the result of commentaries by ECB President Mario Draghi who stated that the regulator is ready to apply additional stimulus measures to battle low inflation in the eurozone. Further easing could start at the nearest ECB meeting in December and include measures such as QE expansion and further deposit rates cut, which are already in the negative zone.
Support and resistance
Bollinger Bands on the daily chart is moving down while the price range is narrowing. MACD is attempting to turn down having formed a sell signal. Stochastic is near the oversold zone.
The indicators recommend considering short positions.
Support levels: 1.0624 (local low), 1.0570, 1.0520 (13 April low), 1.0500, 1.0461 (13 March low).
Resistance levels: 1.0673 (local high), 1.0706, 1.0762 (19 November high), 1.0808, 1.0843, 1.0900, 1.1000, 1.1100 (23 October high), 1.1153.
Short positions can be opened after the breakdown of the level of 1.0570 with targets at 1.0500, 1.0460 and stop-loss at 1.0630. Validity – 2-3 days.