EUR/USD: general review
The pair is trading in a narrow range of 1.0550-1.0610. Consolidation takes place due to the political and economic uncertainty in Europe and the United States.
Euro is under pressure of the upcoming elections in France. If the candidate of the "National Front" party Marie Le Pen comes to power, France may withdraw from the Eurozone, which would significantly weaken the rate of EUR/USD.
Dollar remains under pressure of political factors as well. Despite the fact that the US economy is recovering, and the members of the Federal Open Market Committee promise an imminent rate hike, there is uncertainty about future fiscal policy of the new US government. On Tuesday, President Trump will speak before Congress and present its "ambitious plan to reduce taxes."
Today stats on orders for durable goods will be published in the US. According to the forecast, the indicator is expected to grow by 1.7%. In the case of negative data, the dollar is going to be weakened.
Support and resistance
On the daily chart the pair is moving within the descending channel and successfully gained a foothold below the level of 1.0610. MACD is below both zero and signal lines, its volumes are growing, the lines of Stochastic are pointing upwards. The indicators do not give a specific signal.
Resistance levels: 1.0610, 1.0650, 1.0700, 1.0750.
Support levels: 1.0550, 1.0520, 1.0460.
Long positions can be opened above the level of 1.0650 with the targets at 1.0700 and 1.0750 and stop loss at 1.0610.
Short positions will be relevant below the level of 1.0520, the goal – 1.0460, stop-loss – 1.0550.