Yesterday the pair significantly strengthened.
The pair was supported by mixed macroeconomic statistics from the US and strong data from New Zealand. October Building Permits showed a significant growth of the figure and came out at 5.1% against the previous figure of -5.8%, while the ANZ Business Confidence for November grew from 10.5 to 14.6 points. In addition, at the auction on 1 December the GDT Price Index increased by 3.6%, while the last three figures showed a decline in prices.
Support and resistance
Bollinger Bands on the daily chart is turning horizontally, while the price range is widening. At the same time, the indicator has formed a signal for correctional sales. MACD continues moving up. Stochastic is approaching the overbought zone indicating a possibility of a correctional decline.
The indicators recommend waiting for clearer trading signals.
Support levels: 0.6648 (local low), 0.6618, 0.6596, 0.6560, 0.6534, 0.6500 (23 November lows), 0.6457, 0.6428 (18 November low).
Resistance levels: 0.6687 (local high), 0.6724 (beginning of November high), 0.6791 (30 October high), 0.6812 (27 October high), 0.6865 (23 October high).
Long positions can be opened after the breakout of the level of 0.6675 (with the appropriate indicators signals) with targets at 0.6750, 0.6800 and stop-loss at 0.6640. Validity – 1-3 days.
Short positions can be opened after the breakdown of the level of 0.6650 with targets at 0.6600, 0.6570 and stop-loss at 0.6680. Validity – 2-3 days.