General analysis EURUSD for 16.11.2021
Current dynamics
On Tuesday, the EURUSD pair continues to fall. The last time the trading instrument was so low was in July 2020. Yesterday a strong statistical data on industrial activity in New York State put pressure on the pair. In addition, a speech by Johannes Beermann, a Bundesbank official, created a strong pressure on the European currency. The matter is that the fourth wave of COVID-19 restricts the biggest economy in Europe. The number of infected people is breaking records, and the Ministry of Health is demanding a return to quarantine. Last weekend, social distancing measures were imposed in Amsterdam, currently the same difficult epidemiological situation is observed in Austria and Germany.
Another factor of long-term pressure on EUR is the "dovish" position of ECB. The head of the regulator continues to insist on the disastrous effect of monetary policy tightening. The ECB decreased the volume of urgent aid, but continues to lag far behind the Fed, the central banks of England, Canada and New Zealand.
Today at 15:30 (GMT+2) the U.S. will publish a number of important data on inflation.
Support and resistance levels
On the 4-hour chart the instrument is declining along the lower Bollinger band. The indicator is directed downward and the price range has widened, indicating a continuation of the downtrend. MACD histogram is in the negative zone, holding a strong sell signal. Stochastic is preparing to leave the oversold area, forming a buy signal.
- Support levels: 1.1300, 1.1315, 1.1355.
- Resistance levels: 1.1405, 1.1440, 1.1470, 1.1500, 1.1535.
Trading scenarios
- It is possible to open short positions at the current price with a target of 1.1285 and a stop-loss at 1.1405. Implementation period: 1-3 days.
- Long positions should be opened above the level of 1.1415 with a target of 1.1480 and a stop-loss at the level of 1.1390. Implementation period: 1-3 days.