Yesterday the pair slightly fell and remained near the psychologically important level of 1.0000.
Some support the US Dollar received amid news from China. Even though data on the GDP and Industrial Production came out a little worse than forecasts, the Chinese regulator confirmed that it would continue stimulating economic growth.
In addition, the Franc was pressured by data on the Producer and Import Prices from Switzerland. In December, the index fell by 0.4% while economist forecasted a 0.2% growth.
Support and resistance
Bollinger Bands on the daily chart is turning horizontally while the price range remains unchanged. MACD is falling and giving a moderate sell signal. Stochastic turned down near the overbought zone and falling.
The indicators recommend short positions.
Support levels: 1.0000 (psychologically important level), 0.9956 (15 January low), 0.9920, 0.9900, 0.9879 (11 January low).
Resistance levels: 1.0032 (local high), 1.0075 (local high), 1.0100 (13 January high), 1.0123 (5 January high).
Long positions can be opened after the breakout of the level of 1.0030 (with the appropriate indicators signals) with targets at 1.0080, 1.0100 and stop-loss at 1.0000. Validity – 2-3 days.
Short positions can be opened after the price consolidation below the level of 0.9980 with the target at 0.9900 and stop-loss at 1.0010. Validity – 2-3 days.