Last week the pair grew by more than 1000 points. The pair was supported in the end of the week by strong labour market data from the US that came out significantly better than forecasts.
Since the beginning of this week, the price is in a downward correction. Pair’s decline is happening alongside USD weakening in pairs with commodity currencies, such as NZD, AUD and CAD. Current pair’s fall, however, is only correctional and the growth will resume in the medium term due to falling oil prices and the USD strengthening.
Support and resistance
On the daily chart, the price is moving along an ascending channel with the upper border above the level of 3.0550.
Correctional fall could last to the levels of 2.9770 (ЕМА50), 2.9550 (lower border of the ascending channel), 2.9400 (ЕМА144, ЕМА200 on the 4-hour chart).
On the daily chart, OsMA and Stochastic recommend purchases, while on the 4-hour chart they are turning to sales.
Support levels: 3.0120, 2.9900, 2.9770, 2.9550, 2.9400.
Resistance levels: 3.0350, 3.0550.
Pending buy orders can be placed at the levels of 3.0120, 2.9900, 2.9770 with targets at 3.0350, 3.0430, 3.0550 and stop-loss at 2.9690, and at the level of 3.0350 with targets at 3.0430, 3.0550 and stop-loss at 3.0290.
Pending sell orders can be placed at the level of 2.9640 with targets at 2.9550, 2.9400 and stop-loss at 2.9800.