Current trend
The euro against the US dollar rushed down again amid the growth of the latter due to increased demand and favorable macroeconomic statistics from the United States.
Europe, in turn, publishes negative releases, which provides additional pressure on the pair. At the end of last week, weak data on major indices in the Eurozone came out, and this week - on retail sales.
At the end of the week, one should focus on data on the US labor market, namely the changes in nonfarm payrolls and the unemployment rate for September.
Support and resistance
In the short term, a downward impetus is expected to strengthen due to the growth of the dollar. The first targets will be the levels of 1.1500, 1.1430, 1.1400. After them, the instrument can move to the local minimum of mid-August, and then to new minima. It is worth noting that, technically, the pair has returned to a downtrend, which indicates a high probability of movement within this trend.
Technical indicators confirm the forecast: MACD indicates growth of volumes of short positions, and Bollinger Bands on W1 and above are pointing downwards.
Support levels: 1.1500, 1.1430, 1.1400, 1.1370, 1.1300, 1.1250, 1.1200.
Resistance levels: 1.1550, 1.1575, 1.1600, 1.1665, 1.1690, 1.1730, 1.1775, 1.1800, 1.1830.
Trading tips
In this situation, short positions may be opened from the current level with targets at 1.1400, 1.1300 and stop loss at 1.1630.
Trade
Scenario
Timeframe Weekly
Recommendation SELL
Entry Point 1.1563
Take Profit 1.1400, 1.1300
Stop Loss 1.1630
Key Levels 1.1200, 1.1250, 1.1300, 1.1370, 1.1400, 1.1430, 1.1500, 1.1550, 1.1575, 1.1600, 1.1665, 1.1690, 1.1730, 1.1775, 1.1800, 1.1830
The euro against the US dollar rushed down again amid the growth of the latter due to increased demand and favorable macroeconomic statistics from the United States.
Europe, in turn, publishes negative releases, which provides additional pressure on the pair. At the end of last week, weak data on major indices in the Eurozone came out, and this week - on retail sales.
At the end of the week, one should focus on data on the US labor market, namely the changes in nonfarm payrolls and the unemployment rate for September.
Support and resistance
In the short term, a downward impetus is expected to strengthen due to the growth of the dollar. The first targets will be the levels of 1.1500, 1.1430, 1.1400. After them, the instrument can move to the local minimum of mid-August, and then to new minima. It is worth noting that, technically, the pair has returned to a downtrend, which indicates a high probability of movement within this trend.
Technical indicators confirm the forecast: MACD indicates growth of volumes of short positions, and Bollinger Bands on W1 and above are pointing downwards.
Support levels: 1.1500, 1.1430, 1.1400, 1.1370, 1.1300, 1.1250, 1.1200.
Resistance levels: 1.1550, 1.1575, 1.1600, 1.1665, 1.1690, 1.1730, 1.1775, 1.1800, 1.1830.
Trading tips
In this situation, short positions may be opened from the current level with targets at 1.1400, 1.1300 and stop loss at 1.1630.
Trade
Scenario
Timeframe Weekly
Recommendation SELL
Entry Point 1.1563
Take Profit 1.1400, 1.1300
Stop Loss 1.1630
Key Levels 1.1200, 1.1250, 1.1300, 1.1370, 1.1400, 1.1430, 1.1500, 1.1550, 1.1575, 1.1600, 1.1665, 1.1690, 1.1730, 1.1775, 1.1800, 1.1830