Yesterday the pair continued falling showing choppy trade.
The pair is pressured by strengthening US Dollar that was also supported on Wednesday after the publication of the Fed’s Beige Book.
At the same time, the pair was supported by growing oil prices that yesterday managed to recover to $31 per barrel.
Support and resistance
Bollinger Bands on the daily chart is moving down while the price range is widening. MACD is falling and giving a quite strong sell signal. Stochastic is in the oversold zone and trying to turn up.
The indicators recommend waiting for clearer trading signals.
Support levels: 0.6457 (local low), 0.6428 (local low), 0.6400, 0.6344 (end of September low), 0.6266, 0.6235 (23 September low).
Resistance levels: 0.6500 (local high), 0.6534, 0.6560, 0.6600 (8 January high), 0.6660, 0.6690, 0.6724, 0.6787, 0.6835 (31 December high), 0.6865, 0.6882 (29 December high).
Long positions can be opened after the breakout of the level of 0.6450 (with the appropriate indicators signals) with targets at 0.6510, 0.6600 and stop-loss at 0.6410. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 0.6400 with the target at 0.6340 and stop-loss at 0.6440. Validity – 2-3 days.