At the moment, the pair is trading in the uplink, around 1.1970, as we see on the chart after yesterday's strengthening of the dollar against the European currency, the pair pushed off the support level and continued the upward movement.
Indicator Stochastic shows that we are in the oversold zone and trying to get out of it. The RSI indicator at the moment shows us the gain and direction Up.
At the moment, the pair rises on the channel and if there is no penetration of the support level, the body of the candle and confirmation of the next one, the movement will continue. On our way is a fairly strong level of resistance at 1.2065. So, when entering a long position at the bottom of the channel at this level, I advise you to arrange a take-profit and then follow the behavior of the pair.
Today at 17.00 (GMT +3) in the US, data on the number of open vacancies in the labor market for July. It is predicted that this figure will be 5.960M. At the best rate, at the time of data output, the pair can test the channel support line and go down. After the news you’ll need to wait for confirmation.
But watching the dollar index we observe a downward movement, and we forecast further upward movement of our pair.
In the downward movement, our resistance levels and targets for short positions will be 1,1890, 1,1800, 1,1745, 1,1690.
In case the pair continues to move up, our targets will be 1.2090, 1.2150, 1.2200, 1.2260.
