Last Friday, the USD grew against major currencies due to expectations of the increase in the interest rate by the US Fed. The head of the New York’s Federal Reserve William Dudley said that the increase may take place in June if the labor market continues to recover steadily. Recall that last week the number of primary applications for unemployment benefits fell to 281 thousand. In addition, the minutes of the US Fed for March has shown that some members of the Committee believe that the increase in the interest rate is justified by economic prospects.
On the other hand, industrial production in the UK increased by 0.4% in February, as predicted versus negative result a month before. On annual basis the volume of processing industry in England has increased by 1.1% against expectations of 1.3%.
Trades are going to be quiet today due to lack of economic news from both countries. The Pound is likely to regain slightly after the decline. Stochastic indicator also gives a buy signal.
Support and resistance
The nearest resistance level is 1.4662 (moving average with the period 40). Support level is the lows of the year 2010 at the level of 1.4510.
It is advisable to open long positions from the level of 1.4588 with take profit at 1.4662 and stop-loss at 1.4510.