The EUR/USD pair is trading within a downward trend. The instrument is being pressured by strengthening in the US Dollar amid expectations that the Fed will raise interest rates in September if macroeconomic indicators come out in line with Fed’s forecasts. This week is full of important macroeconomic releases that can have a strong impact on dynamics in the EUR/USD pair. This week’s key publication is data on the US labor market. Statistics on the Nonfarm Payrolls and Unemployment Rate are due on Friday. Favorable data will boost chances of an interest rate increase and allow the US Dollar to strengthen more against the Euro. Thus, short-term dynamics in the EUR/USD pair will be influenced by US macroeconomic statistics.
Support and resistance
MACD histogram on the 4-hour chart remains in the negative zone and its volumes are growing. The indicator is forming a sell signal. Bollinger bands are directed down, suggesting a downward trend continuation.
Support levels: 1.1160, 1.1110, 1.1048.
Resistance levels: 1.1205, 1.1267, 1.1310.
Short positions can be opened after the price consolidation below the level of 1.1160 with targets at 1.1110, 1.1048.
Long positions can be opened after the price consolidation above the level of 1.1205 with the target at 1.1267.