EUR/USD: the pair is waiting

Current trend

During the current week the pair is trading near the level of 1.1840 (Murrey [1/8]) but is unable to move below it because it is supported by the middle line of Bollinger Bands. In the near future the price may remain within the range of 1.1800-1.1850 although potential of reduction to 1.1718 (Murrey [0/8]) remains. Still, investors are unlikely to take risks before Friday releases from the US labor market (the indicator is about to reduce from 260K to 200K).

Moreover, market is unstable due to the uncertain situation with the US state debt limit. The Congress has to agree on its increase before Friday, otherwise the financing of governmental structures will be reduced, and some of them may stop working.

Today attention should be paid to November employment data by ADP that are considered an early indicator for federal statistics. The indicator is expected to drop from 235K to 185K causing the growth of the price and the weakening of the US currency.

Support and resistance

Technical indicators show possible continuation of the fall. Stochastic is directed downwards, and MACD histogram has crossed the signal line from above. Still, one may speak about the opening of short positions only after the price consolidates below the middle line of Bollinger Bands. In this case it may go down to 1.1718 (Murrey [0/8]) and 1.1657 (Murrey [-2/8] for H4). In case the price consolidates above 1.1840, growth may continue to 1.1962 (Murrey [2/8]).

Support levels: 1.1800, 1.1718, 1.1657.

Resistance levels: 1.1840, 1.1900, 1.1930, 1.1962.

Trading tips

Sell positions may be opened from the level of 1.1800 with targets at 1.1718, 1.1657 and stop-loss at 1.1850. Buy positions should be opened from 1.1870 with target at 1.1962 and stop-loss at 1.1840.

Euro vs US Dollar

Buy Sell Spread
1.1795 1.17927 23

Scenario

Timeframe Weekly
Recommendations SELL STOP
Entry Point 1.1800
Take Profit 1.1718, 1.1657
Stop Loss 1.1850
Support levels 1.1657, 1.1718, 1.1800, 1.1840, 1.1900, 1.1930, 1.1962

Alternative scenario

Recommendations BUY STOP
Entry Point 1.1870
Take Profit 1.1962
Stop Loss 1.1840
Support levels 1.1657, 1.1718, 1.1800, 1.1840, 1.1900, 1.1930, 1.1962

EUR/USD: the pair is waiting

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