Yesterday the EUR/USD pair substantially fell. The Euro remains under pressure amid approaching Fed meeting where the regulator is likely to increase interest rates.
In addition, the Euro was pressured by poor macroeconomic statistics from Germany that came out yesterday. Data on the Industrial Production for October showed a growth of only 0.2%, while economists predicted a 0.7% increase. However, the figure for the previous month demonstrated a 1.1% contraction that suggests there is a positive dynamic in the index.
Support and resistance
Bollinger Bands on the daily chart is moving up while the price range is widening. MACD is growing and giving a strong buy signal. Stochastic is turning down near the overbought zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 1.0808 (local low), 1.0762, 1.0706, 1.0673, 1.0638 (last week resistance level), 1.0600, 1.0550, 1.0520 (3 December lows).
Resistance levels: 1.0843 (local high), 1.0900, 1.1000 (beginning of November high), 1.1100 (23 October high), 1.1154, 1.1200.
Long positions can be opened after the breakout of the level of 1.0910 with targets at 1.1000, 1.1020 and stop-loss at 1.0870. Validity – 1-3 days.
Short positions can be opened after the price consolidation below the level of 1.0840 with targets at 1.0780, 1.0720 and stop-loss at 1.0880. Validity – 2-3 days.