On Thursday, the USD strengthened against most of its opponents on the market amid strong macroeconomic data from the US.
The Consumer Price Index for September fell by 0.2% and confirmed expectations, while the yearly index remained unchanged, against forecasted fall of 0.1%. At the same time, the Consumer Price Index ex Food and Energy grew above forecasts by 1.9%. Furthermore, the number of Initial Jobless Claims unexpectedly fell to 255 thousands, against the expected growth to 270 thousands.
Support and resistance
Bollinger Bands on the daily chart is trying to turn sideways, while the price range is widening. The indicator has formed a sell signal. MACD is attempting to turn down and giving a sell signal. Stochastic has left the overbought zone and falling.
The indicators recommend short positions.
Support levels: 1.1358 (local low), 1.1343 (13 October low), 1.1318, 1.1300, 1.1245, 1.1200, 1.1153, 1.1100 (23 September lows).
Resistance levels: 1.1400 (local high), 1.1459 (18 September high), 1.1500 (15 October high), 1.1560, 1.1621, 1.1713 (24 August high).
Short positions can be opened after the breakdown of the level of 1.1358 with targets at 1.1265, 1.1200 and stop-loss at 1.1400. Validity – 1-3 days.
Pending buy orders can be placed at the level of 1.1430 with targets at 1.1500, 1.1515 and stop-loss at 1.1390. Validity – 1-3 days.