EUR/USD: general analysis
At the end of last week, the EUR/USD pair fell due the difference between the ECB and Fed monetary policies.
The USD was supported by positive US labor market indicators for October. Non-farm Payrolls surged 271K from 153K, while analysts expected a growth by 180K. Unemployment rate declined from 5.1% to 5.0%. Amid the abovementioned statistics, at present, economists see more than a 76% chance of a rate hike as early as this December.
Moreover, the ECB is about to extend its quantitative easing programme that adds even more pressure on the EUR/USD pair.
Support and resistance
On the daily chart, MACD indicator is below its signal line, forming a sell signal. Stochastic lines are in the oversold zone and ready to turn up.
The pair is likely grow to the level of 1.0893 during an upward correction and then resume its downward trend.
Support levels: 1.0700, 1.0600, 1.0520.
Resistance levels: 1.0800, 1.0893, 1.1000.
Long positions can be opened after the breakout of the level of 1.0810 with the target at 1.0890 and stop-loss at 1.0790.
Short positions can be opened from the level of 1.0690 with targets at 1.0600, 1.0520 and stop-loss at 1.0720.