EUR/USD: Under Pressure
LiteForex Europe | Oct 20, 2016 10:54AM ET
On Wednesday, the euro fell slightly against the US dollar to a new local low since 25 July. At the same time, it should be noted that the pair managed to recover most of its losses by the end of the afternoon session.
The Eurozone had no major macroeconomic publication scheduled while the US released mixed data on the property front yesterday. In particular, the number of housing starts fell from 1.150 to 1.047 million in September against a projected growth to 1.175 million. The number of building permits increased from 1.152 to 1.225 million, which was substantially better than the forecast of 1.165 million.
Bollinger Bands® on the daily chart is moving actively down while the price range remains almost unchanged. MACD is slowing down its fall but still keeping a sell signal. Stochastic is in the oversold zone trying to turn up that suggests the possibility of a correctional growth in the pair.
The indicators recommend waiting for clearer trading signals.
- Support levels: 1.0954 (19 October low), 1.0934, 1.0900 (10 March level), 1.0867.
- Resistance levels: 1.1000 (psychological level), 1.1025 (18 October high), 1.1058 (14 October high), 1.1100, 1.1122, 1.1153 (10 October level).
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