Yesterday the pair continued falling amid growing anxiety on the market due to resumed fall in oil prices and the Asian stock markets.
At the same time, the US Dollar remains under pressure prior to the Fed Interest Rate Decision that is due tomorrow. According to forecasts, the regulator will not tighten its monetary policy. In addition, the RBNZ will make its Interest Rate Decision as well. Experts expect the rate to stay unchanged at the current 0.25%.
Support and resistance
Bollinger Bands on the daily chart is turning horizontally while the price range is narrowing. MACD is slowly growing and giving a weak buy signal. Stochastic failed to reach the overbought zone and turned down.
The indicators recommend short positions.
Support levels: 0.6424 (local low), 0.6400, 0.6347 (20 January low), 0.6300.
Resistance levels: 0.6475 (local high), 0.6500, 0.6534, 0.6558 (21 January high), 0.6600, 0.6660, 0.6690, 0.6724 (5 January high), 0.6787, 0.6835.
Short positions can be opened from current prices with the target at 0.6370 and stop-loss at 0.6475. Validity – 1-2 days.
Long positions can be opened above the level of 0.6500 with the target at 0.6600 and stop-loss at 0.6460. Validity – 2-3 days.