Last week the pair continued falling towards its August lows near the level of 14.00.
Strong pressure on the pair comes from increased market expectations that the Fed will raise interest rate in the US in December as strong macroeconomic statistics from the US and commentaries by officials point out to this scenario.
At the same time, the USD is pressured by falling US stock markets where the major indices keep declining for the third consecutive day.
Support and resistance
Bollinger Bands on the daily chart is moving down while the price range is narrowing. The indicator, however, has formed a signal for correctional purchases. MACD turned up and formed a buy signal. Stochastic is in the oversold and trying to turn up.
The indicators recommend considering long positions.
Support levels: 14.30, 14.17 (13 November low), 14.00, 13.80, 13.50.
Resistance levels: 14.48 (12 November high), 14.63, 14.77, 15.00 (5 and 6 November highs), 15.15, 15.25, 15.38, 15.54.
Long positions can be opened after the breakout and consolidation above the level of 14.50 (with the appropriate indicators signals) with the target at 14.70 and stop-loss at 14.40. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 14.33 with targets at 14.15, 14.00 and stop-loss at 14.45. Validity – 2-3 days.