Since the beginning of this week, the pair continues developing correction.
The main factor affecting currencies movements remains doubts on the markets regarding the timing of an interest rate increase in the US.
At the same time, macroeconomic data that came out in China on Monday slightly pressured the pair. The Industrial Production in October fell from 6.1% to 5.7%, while the GDP growth for the third quarter of the year slowed from 7.0% to 6.9% though it came out 0.1% better than economists forecasted.
Support and resistance
Bollinger Bands on the daily chart is growing, while the price range is narrowing from the top. The indicators formed a weak sell signal as the price has left the upper border of the range. MACD is turning down and forming a sell signal. Stochastic left the overbought zone and falling.
The indicators recommend short positions.
Support levels: 0.6782 (local low), 0.6739, 0.6708, 0.6647, 0.6618 (14 October low), 0.6585, 0.6560.
Resistance levels: 0.6821 (16 October high), 0.6850, 0.6900 (15 October high), 0.6926 (25 June high).
Long positions can be opened from the level of 0.6825 with the target at 0.6920 and stop-loss at 0.6800. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 0.6739 with the target at 0.6660 and stop-loss at 0.6782. Validity – 2-4 days.