Yesterday the pair strengthened. US Dollar continues receiving support from December Fed decision on interest rates. In addition, yesterday the pair was supported by the publication of data on the Consumer Confidence in the US. In December, the index grew from 92.6 to 96.5 points that was significantly better than forecasts of 92.8 points.
Until the end of the week, volatility on the market is expected to be low.
Support and resistance
Bollinger Bands on the daily chart is turning up while the price range is widening from the top. MACD is growing and giving a quite strong buy signal. Stochastic is moving up as well and approaching the overbought zone.
The indicators recommend long positions.
Support levels: 0.9900, 0.9873, 0.9851 (24 December low), 0.9818, 0.9800, 0.9784 (23 October low).
Resistance levels: 0.9944 (23 December high), 1.0000 (psychologically important level), 1.0032 (4 December high), 1.0075, 1.0100, 1.0120.
Long position can be opened after the breakout of the level of 0.9940 (with the appropriate indicators signals) with the target at 1.0000 and stop-loss at 0.9900. Validity – 2-3 days.
Short positions can be opened below the level of 0.9890 with the target at 0.9850 and stop-loss at 0.9930. Validity – 2-3 days.