Yesterday EUR was strongly growing against USD, stepped off local lows and returned to highs, renewed in the beginning of the week. Euro was supported by macroeconomic publications, growing correctional moods in the market and the weakening of the dollar after the news that US Secretary of State Rex Tillerson can be changed.
However, American macroeconomical statistics was quite optimistic, too, which helped the correction to develop slightly with the beginning of the US trading session. Initial Jobless Claims decreased from 240 to 238K in a week, which was better than analysts expected.
Today the investors are focused on the EU November PMI of different economy sectors and on the USA publications of ISM Manufacturing PMI at 17:00 (GMT+2) ISM and Markit one at 16:45 (GMT+2).
Support and resistance
On the daily chart, Bollinger Bands are moderately growing. The price range is almost the same, but is wide enough for the current volatility level and the restoration of the instrument’s growth in the end of the week.
MACD reversed upwards and formed a buy signal (the histogram is above the signal line). Short-term long positions can be opened, but its’ better to wait until the next week.
Stochastic is trying to reverse into the upward flat. It is better to wait until corresponding “bullish” signal appears.
Resistance levels: 1.1942, 1.1959, 1.2000.
Support levels: 1.1900, 1.1860, 1.1835, 1.1800.
Long positions can be opened after breakout of the levels of 1.1942–1.1959 with the targets at 1.2000–1.2050. Stop loss is 1.1900–1.1920. Implementation period: 2–3 days.
Correctional short positions can be opened after rebound at the level of 1.1942 and breakdown of the level of 1.1900 with the target at 1.1800. Stop loss is 1.1950. Implementation period: 2–3 days.