US dollar continues to grow against euro . EUR/USD closed Friday on the level of 1.0580 despite a weaker nonfarms payroll report than it was expected: 98K workplaces instead of 180K. However, the American currency managed to hold its positions due to stronger statistics on the unemployment rate that made up 4.5% instead of the expected 4.7%.
Another important factor influencing EUR quotes is the escalation of the conflict in the Middle East. After the President of the USA authorized a missile strike at a Syrian air force base, investors left risky assets for more reliable ones (e.g. USD).
Today the market is waiting for a statement by FOMC head whose comments may increase . However, all attention will be focued on the actions of the new White House administration in the Middle and Far East.
Support and resistance
On the H4 chart the pair is continuing the downward trend. A considerable of 1.0550-1.0520 is lying ahead. indicator is below zero and signal lines, and its volumes keep growing. is in the oversold zone. There is a sale signal.
Support levels: 1.0550, 1.0520, 1.0460.
Resistance levels: 1.0600, 1.0660, 1.0700.
The pair may be bought after consolidation above the level of 1.0600 with targets at 1.0660 and stop-loss at 1.0570.
Short positions will become relevant below the level of 1.0550 with targets at 1.0500 and 1.0460 and stop-loss at 1.0580.