Since the beginning of October, we can see the US Dollar falling against its major competitors amid falling expectations of an interest rate hike in the US before the end of the year. Investors are switching their funds into more promising currencies, such as the Euro, the Pound and the AUD.
This week the pair was supported by strong data on the labour market, inflationary expectations and the key indices from Australia.
In the near-term, the USD is expected to strengthen for a short while, and the pair continues growing after that until the end of the year.
Support and resistance
Technical indicators confirm strengthening in the pair. The price has broken out the middle MA of Bollinger Bands and is growing towards its upper MA that coincides with the top border of an upward channel at the level of 0.7400. Volumes of the MACD histogram are growing.
Support levels: 0.7330, 0.7305, 0.7280, 0.7245, 0.7200, 0.7170, 0.7150, 0.7100, 0.7050.
Resistance levels: 0.7350, 0.7375, 0.7400, 0.7440, 0.7500, 0.7550, 0.7600.
Pending buy orders can be placed from the levels of 0.7200, 0.7170, 0.7150 with the target at 0.7500 and stop-loss at 0.7070.