General analysis EURUSD for 12.10.2021
Current dynamics
Yesterday and today EURUSD is trading in a limited price range, near local lows. The key macroeconomic releases this week are publications of data on inflation and consumer spending. On Tuesday the fall of the German economic sentiment index in October from 26.5 to 22.3 basis points put minimal pressure on the pair, which was not a surprise to market participants, given the previous statistics.
The dollar is still in demand among investors as a safe-haven asset. The price pressure should intensify on the background of rising energy prices. At the same time, the retail sales figure is hard to predict. Average hourly earnings in September show positive dynamics, but the growth of consumer spending has slowed down. Thus, given the current uncertainty, the market may become extremely volatile in the coming days. Today at 16:00 (GMT+2) the U.S. jobs openings data will be released.
Support and resistance levels
On the 4h chart, the instrument is testing the lower boundary of the Bollinger Bands, which is the nearest support level. The indicator is directed sideways and the price range is limited, indicating a downward correction. MACD histogram is in the negative zone, holding a sell signal. Stochastic is consolidating near the board of the oversold area.
- Support levels: 1.1485, 1.1525, 1.1540.
- Resistance levels: 1.1560, 1.1575, 1.1610, 1.1640, 1.1680.
Trading scenarios
- It is possible to open short positions at the current price with a target of 1.1495 and a stop-loss at the level of 1.1565. Implementation period: 1-2 days.
- Long positions should be opened above the level of 1.1560 with a target of 1.1625 and a stop-loss at the level of 1.1535. Implementation period: 1-2 days.