Yesterday the pair continued its ascending correction, but the growth in the USD slows amid the absence of new factors on the market.
The pair was pressured by poor data from the US. The NY Empire State Manufacturing Index for November grew from -19.37 to -16.64 points, while experts predicted a growth to -10.00 points. In addition, the NAHB Housing Market Index in February fell from 61 to 58 points that was also worse than economists expected.
Support and resistance
Bollinger Bands on the daily chart is moving down while the price range is quickly narrowing. MACD is growing and giving a quite strong buy signal. Stochastic reached its critical levels in the overbought zone indicating the upward correction might be nearing its end in the short-term.
The indicators recommend waiting for clearer trading signals.
Support levels: 0.9879 (local low), 0.9851, 0.9818, 0.9784, 0.9755 (12 February low), 0.9717, 0.9693, 0.9659 (11 February low).
Resistance levels: 0.9900 (local high), 0.9920, 0.9956 (8 February high), 1.0000 (psychologically important level), 1.0032, 1.0067, 1.0100.
Long positions can be opened after the breakout and consolidation above the level of 0.9900 with targets at 0.9955, 1.0000 and stop-loss at 0.9870. Validity – 1-3 days.
Short positions can be opened after the breakdown of the level of 0.9830 with targets at 0.9780, 0.9730 and stop-loss at 0.9880. Validity – 1-3 days.