Yesterday the pair grew amid the publication of poor macroeconomic statistics in the US. Initial Jobless Claims came out at 285 thousands, while economists predicted 280 thousands. At the same time, today the pair was pressured by week Retail Sales data in Australia. In December, the index fell to 0.0% that was substantially worse than forecasts.
Today extra attention needs to be paid to US labour market data.
Support and resistance
On the daily chart, the pair is trading near the upper MA of Bollinger Bands. The EMA100 and EMA144 remain above the price and are parallel to each other, but the EMA50 is below the price. MACD histogram is in the positive zone and its volumes are very low. ADX is growing, while DI lines are directed down.
Support levels: 0.7151, 0.7113, 0.7071, 0.6953, 0.6908, 0.6870, 0.6829.
Resistance levels: 0.7213, 0.7241, 0.7296, 0.7296, 0.7340.
Short positions can be opened from the level of 0.7151 with targets at 0.7113, 0.7071 and stop-loss at 0.7200. Validity – 1-2 days.
Long positions can be opened from the level of 0.7241 with the target at 0.7290 and stop-loss at 0.7213. Validity – 1-2 days.