On Friday, the pair strengthened and recovered some losses of Thursday amid some decline in the USD. The Dollar was pressured after the publication of poor macroeconomic statistics in the US. According to preliminary data, the Markit Services PMI for December came out at 53.7 points instead of a forecasted 56.0 points.
At the same time, the pair remains under pressure amid falling commodities prices, which decline due to the strengthening after the Fed decision on interest rates USD and slowing Chinese economy.
Support and resistance
The pair continues moving along the ascending channel with its lower border acting as the strong support level.
On the daily chart, the pair is trading between the lower and middle MA’s of Bollinger Bands. MACD histogram is in the negative zone and its volumes are growing indicating a downward trend in the pair. Stochastic lines are in the oversold zone and directed horizontally.
Support levels: 0.7096, 0.7015, 0.6936.
Resistance levels: 0.7200, 0.7240, 0.7300, 0.7385.
Short positions can be opened from the level of 0.7090 with targets at 0.7015, 0.6950 and stop-loss at 0.7110.
Long positions can be opened after the breakout of the level of 0.7200 with targets at 0.7240, 0.7300 and stop-loss at 0.7180.