Yesterday the pair fell and closed near the level of 1.0900 where it was trading during the last 4 sessions.
The pair was pressured by growing anxiety on the market due to falling oil prices. In addition, the Euro remains under pressure prior to the ECB meeting on Interest Rates, at which the regulator may apply additional stimulus measures.
At the same time, the pair was supported by data on the Consumer Price Index from the US. In December, the index fell by 0.1% while economists predicted no change against the previous month.
Support and resistance
Bollinger Bands on the daily chart is moving horizontally while the price range remains unchanged. MACD is near the zero line and its volumes are very low. Stochastic consolidated below the middle of the range and slowly falling.
The indicators recommend waiting for clearer trading signals.
Support levels: 1.0867 (local low), 1.0795, 1.0762, 1.0710 (5 January low).
Resistance levels: 1.0900 (local high), 1.0946, 1.1000 (psychologically important level), 1.1059 (15 December high), 1.1100.
Long positions can be opened after the breakout of the level of 1.0900 (with the appropriate indicators signals) with targets at 1.0960, 1.1000 and stop-loss at 1.0870. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 1.0860 with targets at 1.0820, 1.0770 and stop-loss at 1.0890. Validity – 2-3 days.