EUR/USD: review and forecast
Current trend
The Euro against the US Dollar continues trading in the region of 1.1000. Having fallen to the level of 1.0985, the pair corrected up but then resumed its fall and is now aiming to consolidate below the level of 1.0950.
Today the market can be influenced by the publication of data on US retail sales in September. Favorable macroeconomic forecasts suggest strengthening in the US Dollar that will pressure the EUR/USD pair.
Support and resistance
Bollinger Bands is still directed down while the price range is narrowing. The price continues falling from the middle line of the indicator towards the lower one.
Given this data and the projected rise in US retail sales, the price is likely to try to break down the level of 1.0985 and head towards 1.0950.
Support levels: 1.1000, 1.0980, 1.0960, 1.0950, 1.0910, 1.0900, 1.0880, 1.0850, 1.0800, 1.0760, 1.0700, 1.0670.
Resistance levels: 1.1050, 1.1065, 1.1100, 1.1140, 1.1180, 1.1200, 1.1230, 1.1280, 1.1300, 1.1330, 1.1360, 1.1370, 1.1400, 1.1420, 1.1430, 1.1450, 1.1490, 1.1500, 1.1530, 1.1550.
Trading tips
Short positions can be opened from the current level with targets at 1.0985, 1.0950 and stop-loss at 1.1040.
At the same time, the possibility of a price rebound should not be dismissed, thus, pending sell order can be placed at the level of 1.0985 with the target at 1.1040 and stop-loss at 1.0950.