The pair EUR / USD on Friday is trading in a narrow range, near the previously established 4-week high. Traders almost ignored the weak industrial production report in Germany. According to the report in October, production fell by 1.7%, with a forecast of + 0.1%.
The focus is today on the US labor market report, so most investors have taken a wait and see attitude. Data on the labor market will show the state of the American economy and the main vector of its movement, and can significantly affect the medium-term trend of the American currency and the EUR / USD pair.
Many experts say that the report may turn out weaker, amid a slowdown in investment by US companies and negative data from ADP. A weak report can serve as a strong driver for the further development of the upward movement of the EUR / USD pair and vice versa.
On the chart, the bulls managed to defend support at the level of 1.1070. Now the trading is in the area of the weekly maximum at 1.1115. With high probability today we can expect a breakdown of this mark. You can rely on continued upward movement if the price consolidates above 1.1115.
Resistance levels: 1.1130, 1.1180, 1.1235.
Levels of support: 1.1070, 1.1015, 1.0990
The main scenario is an increase to 1.1130 and a correction down.
An alternative scenario is consolidation above 1.1130 and growth to 1.1180.
The fundamental background is neutral. Today, it’s best to stay out of the market, as US labor market data can cause strong unpredictable price swings.