This week, the pair recovered the losses it incurred last Friday when the US released strong data on the labour market. At present, the price corrected to the region of the middle MA of and attempts to resume its growth. Critical for Bulls seems to be the level of 1.1166 that coincides with 23.6% Fibonacci correction. Its breakout would lead to a growth continuation to the levels of 1.1200, 1.1233, and possibly 1.1270. For Bears, crucial would be the level of 1.1125 that coincides with the middle MA of , a breakdown of which would open the way towards the levels of 1.1090, 1.1058 and 1.1015.
Tomorrow attention needs to be paid to data on Retail Sales in the US. According to forecasts, the index will fall that might pressure the US Dollar .
Support and resistance
Technical indicators give contradicting signals. are directed up. lines turned down. histogram is in the positive zone and its volumes are falling.
Support levels: 1.1125, 1.1090, 1.1058, 1.1015.
Resistance levels: 1.1166, 1.1200, 1.1233, 1.1270.
Long positions can be opened after the breakout of the level of 1.1166 with targets at 1.1200, 1.1233, 1.1270 and stop-loss at 1.1130. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 1.1125 with targets at 1.1090, 1.1058 and stop-loss at 1.1155. Validity – 2-3 days.