The main factor behind dynamics in the pair remains increased demand for the US Dollar amid strengthened investors’ expectations of monetary policy tightening in the US in December. Thus until the end of the year the pair will remain under pressure.
This week, the pair was supported by poor data on Industrial Production and key US indices, and strong figure on the Producer Price Index – Input from New Zealand that in the third quarter grew by 1.6% instead of a forecasted fall by 0.2%.
Support and resistance
The pair is falling along a narrow descending channel and has now reached its upper border. A fall towards 0.6405 is expected in the medium term and towards 0.6250 in the long term.
The price bounced off the middle MA of Bollinger Bands and moving towards its lower MA. MACD’s histogram is in the positive zone and its volumes start falling. The indicators suggest a fall in the pair.
Support levels: 0.6510, 0.6450, 0.6530, 0.6350, 0.6300, 0.6250.
Resistance levels: 0.6600, 0.6640, 0.6715, 0.6785, 0.6860, 0.6895.
Open short positions from current levels with the target at 0.6405 and stop-loss at 0.6660.