US stock indices are growing, thus, it can be suggested that investors are confident about the stability of US economic recovery.
When strong labor market statistics were released in the US, WSJ Dollar Index grew to 90.56, reaching its highs since December 2002.
Despite low inflation, Janet Yellen and other representatives of the Fed confirm that US interest rates may be raised in December.
On Tuesday, S&P 500 grew by 0.2%, DowJonesIndustrialAverage was also up by 0.2% or 28 points, while NasdaqComposite fell by 0.2%. Market growth is still under pressure from concerns over global economic slowdown.
The volatility is expected to remain low today due to the public holiday in the US.
Support and resistance
The price remains within an upward channel on the daily chart with the upper border at 18100 (July highs). A decline in the pair is limited by the levels of 17730 (100.0% Fibonacci) and 17320 (the area of EMA200/144/50 on the daily chart).
OsMA and Stochastic on the daily chart recommend short positions. On the 4-hour and weekly charts, the indicators are giving buy signals. The pair is likely to grow in the short term.
Support levels: 17730, 17700, 17400, 17320.
Resistance levels: 18000, 18100.
Long positions can be opened from the level of 17830 with targets at 17900, 18000, 18100 and stop-loss at 17730.
Short positions can be opened from the level of 17720 with targets at 17690, 17600, 17400 and stop-loss at 17740.