General analysis EURUSD for 13.10.2021

Current dynamics

Yesterday EURUSD updated local lows. The price range is still narrow, and the pair is consolidating near the level of 1.1550 for more than a week. Today the instrument is getting stronger, having overcome Tuesday's losses, however fundamental data points to the weakness of the European currency.

Recent macroeconomic releases from Eurozone and Germany were negative. Index of business activity, industrial production, a decline in manufacturing orders, ZEW data - all that was a strong disappointment for market participants. In addition, rising energy prices are increasing price pressure in the EU economy.

At the same time the dollar remains attractive for investors, despite the falling government bond yields. Today's inflation report is likely to have a significant impact on the pair's dynamics.

The US CPI data will be published today at 14:30 (GMT+2).

Support and Resistance levels

On the 4-hour chart there is a correction of the downtrend. The instrument is entrenched in the upper part of the Bollinger Bands. The indicator is directed sideways and the price range is unchanged, indicating a correction. MACD histogram is in the negative zone, holding a weak sell signal. Stochastic is preparing to enter the overbought area, a strong sell signal is expected within 1-2 days.

• Support levels: 1.1485, 1.1515, 1.1530, 1.1550, 1.1560.
• Resistance levels: 1.1585, 1.1610, 1.1640, 1.1680.

Trading scenarios

• It is possible to open short positions at the current price with a target of 1.1500 and a stop-loss at the level of 1.1585. Implementation period: 1 day.
• Long positions should be opened above the level of 1.1590 with a target of 1.1640 and a stop-loss at the level of 1.1575. Implementation period: 1-2 days.