The pair continues growing amid positive macroeconomic statistics from the UK. The Markit Services PMI showed a significant increase from 47.4 to 52.9 points, against forecasted 50.0 points. In addition, the US Dollar remains under pressure after Friday’s publication of the labour market report that did not match the expectations.
Today pair’s dynamics can be affected by data on the ISM Non-Manufacturing PMI from the US. A forecasted increase in the index could break current upward tendency. Otherwise, the pair might consolidate above the level of 1.3400.
Support and resistance
On the 4-hour chart, the pair is testing the level of 1.3340. is directed up while the price range is narrowing, suggesting the possibility of a trend change. MCD histogram is in the positive zone and its volumes are falling. is growing having bounced off the border of the oversold zone.
Support levels: 1.3311, 1.3299, 1.3285, 1.3267, 1.3253, 1.3240.
Resistance levels: 1.3344, 1.3359, 1.3371, 1.3400.
Long positons can be opened from current prices with targets at 1.3360, 1.3370 and stop-loss at 1.3300. Validity – 1-2 days.
Short positions can be opened from the level of 1.3310 with the target at 1.3270 and stop-loss at 1.3330. Validity – 1-2 days.