This week, the currency pair EUR/USD has declined to the level of 1.2664, which are the new local lows. By the beginning of the European session, the pair had managed to win back some of the losses and reached the level of 1.2700. However, the pair failed to consolidate at this level and is now traded at the level of 1.2690.
The pair remains under pressure and further decline in the pair is possible this week. Today’s news will include: German unemployment rate in September, US consumer confidence index and consumer price index of Eurozone. On Thursday, ECB interest rate decision will be known and the meeting of the Monetary Policy Committee will be held, which will probably announce expansion of the economic stimulus measures. It is worth noting that quite recently Mr. Mario Draghi said that these measures can be implemented, if pressure on Euro will continue to increase. On Friday the data on the US labor market for September will become known, which will obviously add volatility to the market. If the US economic statistics affirms the recovery of the US economy once again, the price can drop to the levels of 1.2600-1.2550.
The nearest resistance level is 1.2700, which is also the key level for the “bulls”. Next after it will go the levels of 1.2720, 1.2760 and 1.2780. Support levels: 1.2680, 1.2665.
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