EUR/USD: general review
The euro continues to decline against the US dollar.
In early August, the pair tested a new local minimum of 1.1030, failed to overcome this mark, and quickly corrected to the upper border of the channel at 1.1210. Subsequently, the downward impulse resumed, and in two weeks, the instrument almost returned to the local minimum of 1.1030. The European currency is losing ground amid weak data on industrial production, GDP, and inflation. The dollar, on the contrary, receives support due to a positive fundamental background: last week, strong data on inflation and retail sales were published. Investment interest in the US currency also puts serious pressure on the pair.
Support and resistance
The instrument continues to trade within a broad downward channel and will tend to the lower border of this channel at 1.0935, 1.0960. Probably, the pair will receive an additional downward momentum and go down more rapidly. The level of 1.0825 is the key support, from which a longer upward correction is expected with the possibility of a reversal.
Technical indicators on the D1 chart and above still give a strong decline signal: MACD indicates the growth of the volume of short positions, and Bollinger Bands are pointing downwards.
Support levels: 1.1030, 1.1000, 1.0960, 1.0935, 1.0855, 1.0825.
Resistance levels: 1.1115, 1.1160, 1.1200, 1.1250, 1.1260, 1.1315, 1.1415, 1.1450.
Short positions may be opened from the current level with targets at 1.0935, 1.0855, 1.0825 and stop loss at 1.1190.
1.0935, 1.0855, 1.0825
1.0825, 1.0855, 1.0935, 1.0960, 1.1000, 1.1030, 1.1115, 1.1160, 1.1200, 1.1250, 1.1260, 1.1315, 1.1415, 1.1450