Amid US economic data proving a slight recovery, USD rose insignificantly against the common currency.
During yesterday’s trading session the dollar increased by 54 points against the euro. Market volatility was 72 points.

Fundamental Review:

According to the Labor Department, the number of jobless claims increased by 46,000 to 388,000 in the week ended October 13. The economists forecast a rise in claims to 365,000.
According to Conference Board, the index of U. S. leading economic indicators rose 0.6% in September after a revised drop in August that was bigger initially reported 0.1% drop in September. Experts projected the gauge would climb 0.2% in August.
During yesterday’s trading session the single currency fell despite ongoing EU summit, as it is expected the agreement on the measures aimed at to tackle debt crisis is to be reached.

Technical Analysis:

The current correctional drop in price is due to some long positions were closed by the major buyers, sellers presence on the market is not observed. On the whole, trading continues in upward price channel, the lowest border is placed in the range 1.2890, the low of October 15 to 1.3055, yesterday’s low. The upper border of the channel is near 1.3139, yesterday’s high.
Bulls experienced a slight technical defeat; the support level 1.3079 was broken. Thus, the pair may continue its downward move towards the level of 1.3048. EUR/USD may reach more crucial point of 1.3013.
The 20-day moving average is making the situation more complex. It has crossed 60-day moving average in vertical direction which is near 1.3095 and is a dynamical resistance level.
If we talk about the resistance levels, we should say the situation is quite clear. The yesterday’s support level 1.3079 can show resistance. If it is broken, then the base of 31 figure will be observed. On the other hand, if it is broken too, 1.3128 will be the most remote target.
After two sessions, Bollinger Bands reversed and turned down, pointing out the building of a downtrend. The trading is in the lower pattern of the channel and the moving average, placed at 1.3082, is a dynamical resistance level.
MACD indicator is in the sale range. However, as it was depicted above, the presence of strong sellers on the market is not seen. Thus, it is not recommended to consider strong sales for the EUR/USD pair.

Today’s key resistance and support levels:

Support levels: 1.3048, 1.3013, and 1.2985
Resistance levels: 1.3079, 1.3101, and 1.3128
Moving Average 60-day (yellow line) – 1.3095
Moving Average 20-day (green line) - 1.3082