Yesterday the pair significantly fell amid the publication of poor data on the Consumer Price Index in New Zealand. In the fourth quarter of 2015, the index fell to 0.1% while economists predicted a 0.4% growth.
Today extra attention needs to be paid to data on the Consumer Price Index in the US. A growth in the index can add to the pressure on the pair. High volatility is expected on the market.
Support and resistance
On the 4-hour chart, the pair is trading near the lower MA of Bollinger Bands. Moving averages with 50, 100 and 144 periods remain above the price and directed down indicating a negative trend in the pair. MACD histogram is in the negative zone and its volumes are growing. ADX is directed horizontally, while DI lines move in opposite directions.
Support levels: 0.6313, 0.6220.
Resistance levels: 0.6466, 0.6576, 0.6718, 0.6771, 0.6878, 0.6953.
Open short positions from current prices with targets at 0.6313, 0.6300 and stop-loss at 0.6410. Validity – 1-2 days.
Pending buy orders can be placed at the level of 0.6466 with the target at 0.6576 and stop-loss at 0.6410. Validity – 1-2 days.