Yesterday the pair noticeably declined as it was pressured by quite strong macroeconomic statistics that came out in the US.
Durable Goods Orders for November remained unchanged from the previous month figure that was significantly better than expectations of experts who predicted a 0.7% decline. Data on Personal Income showed a 0.3% growth, which was also better than forecasts. In addition, Reuters/Michigan Consumer Sentiment Index for December grew from 91.8 to 92.6 points, against forecasted 92.0 points.
Support and resistance
Bollinger Bands on the daily chart is turning horizontally while the price range is narrowing. MACD is slowly growing and giving a very weak buy signal. Stochastic is moving up and approaching the overbought zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 1.0900 (local low), 1.0867 (local low), 1.0795 (7 December low), 1.0762, 1.0706, 1.0673.
Resistance levels: 1.1000 (psychologically important level), 1.1059 (15 December high), 1.1100 (23 October high), 1.1153, 1.1200.
Long positions can be opened after the breakout of the level of 1.1055 with the target at 1.1230 and stop-loss at 1.1000. Validity – 2-4 days.
Short positions can be opened after the breakdown of the level of 1.0900 with the target at 1.0760 and stop-loss at 1.1060. Validity – 2-4 days.