EUR/USD: decline is likely to continue

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Current trend

Consumer Price Index, Industrial Production and Capacity Utilization statistics are due today in the US. Ahead of these releases, the US dollar             has strengthened against its major counterparts.
At the same time, recent statistics confirm that the EU economy is facing low growth and a low inflation . Thus, due to the difference between monetary policy concepts of the Fed and the ECB, the EUR/USD             pair remains under double pressure.

Support and resistance

The EUR/USD             pair broke down the lower border of an upward channel on the weekly chart at the level of 1.0760 and continues declining towards year lows at 1.0500.
OsMA and Stochastic indicators recommend short positions.
If indicators on the 4-hour chart give appropriate signals, the pair may start correcting up towards 1.0765 (EMA50 and the upper border of a downwards channel on the 4-hour chart), 1.0820, 1.0860 (May, July lows) and 1.0930 (EMA144). Nevertheless, short positions are more preferable.

Support levels: 1.0650, 1.0600, 1.0500.
Resistance levels: 1.0700, 1.0765, 1.0800, 1.0820, 1.0860, 1.0930, 1.1050, 1.1180, 1.1285.

Trading tips

Short positions can be opened from the level of 1.0650 with targets at 1.0620, 1.0590, 1.0510 and stop-loss at 1.0690.
Long positions can be opened from the level of 1.0710 with targets at 1.0765, 1.0790, 1.0820, 1.0860 and stop-loss at 1.0680.
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