At December 3 meeting, the ECB will revise its . The EU economy and are under pressure from concerns over global economic slowdown. On the other hand, Fed officials and its Chair Janet Yellen have repeatedly stated the possibility of a rate hike at the forthcoming meeting, due in December. Thus, the EUR/USD pair is under double "verbal" pressure.
Today, ahead of Non-farm Payrolls for October, due in the US, the remains low. In case of favorable statistics, the US dollar will strengthen against its counterparts.
Support and resistance
OsMA and indicators on the daily, weekly and monthly charts recommend short positions. The pair is trading near the of 1.0820 (July, May lows), the breakdown of which may lead to a decline to 1.0500 (year lows). As long as the price remains below the levels of 1.1210 (EMA144 on the ), 1.1285 (23.6% Fibonacci), 1.1325 (EMA200 on the ), short positions are more preferable.
If the NFPR statistics come in below the forecast today, an upward correction to the levels of 1.1050, 1.1130 (EMA50 on the ) may follow.
Support levels: 1.0820, 1.0800, 1.0735, 1.0700.
Resistance levels: 1.1050, 1.1130, 1.1210, 1.1285, 1.1325.
Short positions can be opened form the level of 1.0850 with targets at 1.0820, 1.0800, 1.0735, 1.0700 and stop-loss at 1.0910.
Long positions can be opened form the level of 1.0920 with targets at 1.1000, 1.1050, 1.1130 and stop-loss at 1.0880.