At the yesterday’s meeting, the Fed increased interest rates in the US from 0.25% to 0.5% that significantly pressured the pair. In addition, the pair was pressured by poor data on IFO Indices from Germany that came out worse than forecasts.
Due to expectations of a gradual interest rate increase in the US and its stable economic recovery, the pair will remain under pressure in the medium term.
Today attention needs to be paid to the US labour market data, and tomorrow – to the Markit Services PMI.
Support and resistance
The pair is moving along an ascending channel with the upper border at 1.1075 and the lower border at the levels of 1.0460, 1.0410 and 1.0350.
The nearest strong support level is at 1.0775 (middle MA of Bollinger Bands, Kijun Sen line of Ichimoku).
On the 4-hour chart, MACD’s histogram is in the negative zone and its volumes are growing.
Support levels: 1.0775, 1.0710, 1.0690, 1.0650, 1.0600, 1.0570, 1.0525, 1.0460, 1.0410, 1.0350.
Resistance levels: 1.0855, 1.0960, 1.1040, 1.1075, 1.1135, 1.1165, 1.1200, 1.1255, 1.1320, 1.1385, 1.1450.
Short positions can be opened from current levels and from 1.0960 with targets at 1.0460, 1.0350 and stop-loss at 1.0980.