Yesterday the EUR/USD pair significantly grew and reached the level of 1.1262.
The pair was supported by weak data on the ISM Non-Manufacturing PMI in the US. In August, the index fell from 55.5 to 51.4 points while experts forecasted a decline to only 55.0 points. After the release, the probability of an interest rate hike in September fell to 9%.
Tomorrow extra attention needs to be paid to the ECB Interest Rate Decision. Experts anticipate an expansion in the stimulus program that might substantially pressure the Euro .
Support and resistance
On the 4-hour chart, the pair continues moving along a narrow sideway channel.
Technical indicators give contradicting signals. histogram is in the positive zone and its volumes are growing. is turning down in the overbought zone.
Support levels: 1.1230, 1.1180, 1.1125.
Resistance levels: 1.1270, 1. 1305 , 1.1340.
Long positions can be opened from the level of 1.1270 with the target at 1.1340 and stop-loss at 1.1250.
Short positions can be opened from the level of 1.1230 with the target at 1.1180 and stop-loss at 1.1250.