Last week, the US Dollar gained strong support from the ADP employment report and Friday's non-farm payrolls report. At the same time, it should be noted that US trade deficit widened to $44.50 billion that is considered as a negative factor for the American currency.
Favorable data on Germany’s industrial production was released in this morning. In June industrial output grew 0.5% and 0.8% in monthly and annual terms respectively.
On Tuesday dynamics in the pair might be influenced by data on Germany’s trade balance. A strong growth in the country’s exports and favorable data on trade surplus could support the European currency.
Support and resistance
On the 4-hour chart, the pair is trading between the middle and lower lines of . histogram is in the negative zone, its volumes are gradually growing. is moving up.
Support levels: 1.1070, 1.1040, 1. 1015 , 1.0990, 1.0965, 1.0950.
Resistance levels: 1.1105, 1.1125, 1.1160, 1.1185, 1.1200, 1.1235, 1.1250.
Short positions can be opened from the level of 1.1060 with the target at 1. 1015 and stop-loss at 1.1080.
Long positions can be opened from the level of 1.1110 with the target at 1.1160 and stop-loss at 1.1090.
Validity – 1-3 days.