Euro against US dollar remains in the upward range despite considerable reduction of the pair at the end of the previous and the beginning of the current trading week. By now the instrument has moved to the side consolidation stage after considerable growth in November.
For two trading weeks the pair has been forming a narrowing side channel in view of negative fundamental background in Eurozone and growing demand for the US currency. Today EUR against USD reached the lower border of the upward range due to negative releases on services PMI and retail sales in Eurozone.
The main macroeconomic data on the USA and Eurozone that may considerably influence the dynamics of the instrument will be released at the end of the current week, therefore today and tomorrow the pair will continue to consolidate within the side channel.
Support and resistance
In the medium term the upward tendency is likely to continue due to decreasing trust in the US currency caused by delays in further tightening of the monetary policy and increase of interest rates by the Fed. Technically, consolidation is about to end with rapid growth of the pair to 1.1980, 1.2030, 1.2100. Indicators confirm the growth outlook: MACD shows the preservation of high volumes of long positions, and Bollinger Bands in the D1 chart have changed their direction and are pointing upwards.
Support levels: 1.1860, 1.1830, 1.1800, 1.1785, 1.1775, 1.1730, 1.1665, 1.1600.
Resistance levels: 1.1880, 1.1900, 1.1925, 1.1980, 1.2030, 1.2100, 1.2120, 1.2150.
In this situation long positions may be opened from the current level with target at 1.1980, 1.2030, 1.2100 and stop-loss at 1.1790.