The pair continues growing amid weakening in the US Dollar , which remains under pressure due to a fallen probability of tightening by the American regulator in the nearest future. In addition, the pair was supported by today’s Reserve Bank of New Zealand President Graeme Wheeler speech in which he noted the effectiveness of pursued and suggested it would be reasonable to tighten it in the near term.
This week, extra attention needs to be paid to data on the US GDP that is due on Friday. An expected fall in the index from 1.2% to 1.1% might substantially support the pair.
Support and resistance
On the , the pair is testing a strong at 0.7325.
is directed up. histogram is in the positive zone and its volumes are growing. turned up near the border of the overbought zone.
The indicators recommend long positions.
Support levels: 0.7278, 0.7240, 0.7201, 0.7179, 0.7143, 0.7110, 0.7064.
Resistance levels: 0.7325, 0.7339, 0.7367, 0.7401.
Long positions can be opened from current prices with targets at 0.7370, 0.7400 and stop-loss at 0.7240. Validity – 2-4 days.
Short positions can be opened from the level of 0.7200 with the target at 0.7140 and stop-loss at 0.7220. Validity – 2-4 days.