Yesterday the pair continued growing.
The pair was supported by strong data from China where the CB Leading Economic Index for November grew from 0.3% to 0.6%. At the same time, mixed data from the US could not strengthen the US Dollar. Revised data on the US GDP for the third quarter of the year showed a growth of the economy of 2.0%, against forecasted 1.9%. The number of Existing Home Sales in November, however, shrank by 10.5% from 5.32 million to 4.76 million that was significantly worse than forecasts.
Support and resistance
Bollinger Bands on the daily chart is moving up while the price range is slowly widening. MACD is growing and giving a weak buy signal. Stochastic is approaching the border of the overbought zone indicating a possibility of a downward correction.
The indicators recommend waiting for clearer trading signals.
Support levels: 0.6787 (local low), 0.6724, 0.6690 (18 December lows), 0.6660, 0.6600 (9 December low), 0.6560.
Resistance levels: 0.6835 (16 December high), 0.6865, 0.6900 (15 October high), 0.6926.
Long positions can be opened after the breakout and consolidation above the level of 0.6835 with targets at 0.6900, 0.6925 and stop-loss at 0.6800. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 0.6780 with the target at 0.6690 and stop-loss at 0.6820. Validity – 2-3 days.