The EUR / USD pair has set a new 15-day low of trading today. The decline in quotations is taking place against the background of the strengthening of the dollar across the entire spectrum of the market. Investors will continue to win back the strong US statistics released on Thursday.
At the same time, the prospects for further local growth of the dollar remain very uncertain, since later important data on the labor market will be published, which may change the Fed's position on the implementation of monetary policy.
Fears remain on the market that the Fed may continue to implement soft monetary policy amid increasing inflationary pressures in the United States. New York Fed chief John Williams said Thursday that the economy has not reached levels at which a cut in stimulus is possible, but added that the Fed could start a discussion on the issue.
Speeches of FRS Chairman Jerome Powell and ECB President Christine Lagarde are also expected today. Their statements can have a strong impact on the further course of trading.
On the chart, we see the development of the reversal formation, which was considered in the previous review. It is very likely that in the near future we will see a change in the medium-term trend for this instrument. In the short term, we are waiting for the development of the rollback movement to the area of 1.2170 and the resumption of the downward movement.
Strong volatility is expected today, so the entry points for selling should be considered at least 1.2190.
Buys with very short targets can be viewed at current prices.
Resistance levels: 1.2190, 1.2205, 1.2250.
· Support levels: 1.2105, 1.2060, 1.2000.
The main scenario is corrective growth in the direction of the levels 1.2170-1.2190.
An alternative scenario is a decline from current levels in the direction of 1.2060.
The current fundamental background is neutral.
Trading recommendations: consider the sell signals in the area of the 1.2190 level.