The publication of positive US macro data for November (last Friday) supported the dollar.
At the beginning of today's European session, DXY dollar index futures are trading at 98.19, 29 pips higher than the closing price last Thursday.
The growth of PMIs for purchasing managers for the manufacturing and service sectors, as well as the consumer sentiment index also triggered a decline in demand for defensive assets - gold and government bonds, increasing the tendency of investors to buy risky assets of the US stock market.
The final consumer sentiment index of the University of Michigan at the end of November amounted to 96.8 against the October level of 95.5, which is also higher than the forecast of 95.7.
American consumers positively assess the prospects for the US economy, which still demonstrates greater stability in the context of international trade conflicts than the economy of other US partner countries.
Due to concerns about the state of the Eurozone economy, the euro is unlikely to show significant growth against the US dollar in the near future.
Today, regarding the dollar and the euro, the publication of important macro statistics is not planned. This week, investors will follow the publication on Thursday and Friday of inflation indices in Germany and the Eurozone.
Meanwhile, EUR / USD continues to decline, trading below key resistance levels of 1.1125 (ЕМА144 on the daily chart), 1.1170 (ЕМА200 on the daily chart).
A break into the zone below the local support level of 1.0995 (November lows) is likely to indicate a strengthening of the downward trend with targets at support levels of 1.0940, 1.0900. Any corrective growth of EUR / USD will be limited by resistance levels 1.1125, 1.1170. Long-term negative dynamics of EUR / USD remains. Short positions are preferred.
Support Levels: 1.0995, 1.0940, 1.0900
Resistance Levels: 1.1053, 1.1060, 1.1110, 1.1125, 1.1175
Trading Recommendations
Sell by market. Stop-Loss 1.1070. Take-Profit 1.0995, 1.0940, 1.0900
Buy Stop 1.1070. Stop-Loss 1.1010. Take-Profit 1.1110, 1.1125, 1.1175
