Yesterday the pair continued falling amid the publication of weak data in Germany.
The IFO – Expectations for February fell from 102.3 to 98.8 points, while experts predicted a fall to 101.6 points. Furthermore, the IFO – Business Climate declined from 107.3 to 105.7 points that was also worse than prediction.
At the same time, the pair was supported by mixed data from the US. Existing Home Sales in January came out better than forecasts and showed a growth of 0.4%. However, the Consumer Confidence fell from 97.8 to 92.2 points, instead of a forecasted decline to 97.0 points.
Support and resistance
Bollinger Bands on the daily chart is turning down while the price range is widening. MACD is falling and giving a sell signal. Stochastic is in the oversold zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 1.1000 (local low), 1.0967, 1.0939, 1.0900, 1.0867, 1.0834 (beginning of the month low), 1.0800, 1.0777 (21 January low).
Resistance levels: 1.1059 (local high), 1.1100, 1.1160 (17 February high), 1.1200, 1.1246, 1.1300, 1.1337, 1.1376 (11 February high), 1.1400.
Short positions can be opened after the breakdown of the level of 1.1000 with targets at 1.0940, 1.0890 and stop-loss at 1.1040. Validity – 2-3 days.
Long positions can be opened after the breakout of the level of 1.1050 (with the appropriate indicators signals) with targets at 1.1120, 1.1150 and stop-loss at 1.1010. Validity – 2-3 days.