Current trend
This week, the pair demonstrates a moderate decline at the background of strong macroeconomic releases in the US.
The main losses occurred on Wednesday, after the release of the Producer Price Index in the US. YoY, the index exceeded the positive forecast by 0.2%. Thus, the positive inflationary dynamics corresponds to the "hawkish" plans of the Fed on monetary policy.
Yesterday, the pair won back a small part of Wednesday's losses due to the information about the desire of China and the US to negotiate to resolve controversial trade issues.
The key event of Friday is the publication of the Fed monetary policy report at 17:00 (GMT+2).
Support and resistance
In the H4 chart, the instrument could not break out the resistance level of 0.6790 and started to decrease. Bollinger Bands are directed downwards, and the price range has expanded, indicating the further downtrend. MACD histogram is in the negative zone keeping the sale signal. Stochastic does not give clear signal for entering the market.
Support levels: 0.6745, 0.6736, 0.6708, 0.6686.
Resistance levels: 0.6790, 0.6815, 0.6845, 0.6878, 0.6923, 0.6963.
Trading tips
Short positions may be opened from the current level with targets at 0.6700, 0.6685 and stop-loss at 0.6780.
Long positions may be opened above the level of 0.6780 with target at 0.6845 and stop-loss at 0.6760.
Implementation period: 1-2 days.
Trade
Scenario
Timeframe Intraday
Recommendation SELL
Entry Point 0.6742
Take Profit 0.6700, 0.6685
Stop Loss 0.6780
Key Levels 0.6686, 0.6708, 0.6736, 0.6745, 6790, 0.6815, 0.6845, 0.6878, 0.6923, 0.6963
Alternative scenario
Recommendation BUY STOP
Entry Point 0.6785
Take Profit 0.6845
Stop Loss 0.6760
Key Levels 0.6686, 0.6708, 0.6736, 0.6745, 6790, 0.6815, 0.6845, 0.6878, 0.6923, 0.6963
This week, the pair demonstrates a moderate decline at the background of strong macroeconomic releases in the US.
The main losses occurred on Wednesday, after the release of the Producer Price Index in the US. YoY, the index exceeded the positive forecast by 0.2%. Thus, the positive inflationary dynamics corresponds to the "hawkish" plans of the Fed on monetary policy.
Yesterday, the pair won back a small part of Wednesday's losses due to the information about the desire of China and the US to negotiate to resolve controversial trade issues.
The key event of Friday is the publication of the Fed monetary policy report at 17:00 (GMT+2).
Support and resistance
In the H4 chart, the instrument could not break out the resistance level of 0.6790 and started to decrease. Bollinger Bands are directed downwards, and the price range has expanded, indicating the further downtrend. MACD histogram is in the negative zone keeping the sale signal. Stochastic does not give clear signal for entering the market.
Support levels: 0.6745, 0.6736, 0.6708, 0.6686.
Resistance levels: 0.6790, 0.6815, 0.6845, 0.6878, 0.6923, 0.6963.
Trading tips
Short positions may be opened from the current level with targets at 0.6700, 0.6685 and stop-loss at 0.6780.
Long positions may be opened above the level of 0.6780 with target at 0.6845 and stop-loss at 0.6760.
Implementation period: 1-2 days.
Trade
Scenario
Timeframe Intraday
Recommendation SELL
Entry Point 0.6742
Take Profit 0.6700, 0.6685
Stop Loss 0.6780
Key Levels 0.6686, 0.6708, 0.6736, 0.6745, 6790, 0.6815, 0.6845, 0.6878, 0.6923, 0.6963
Alternative scenario
Recommendation BUY STOP
Entry Point 0.6785
Take Profit 0.6845
Stop Loss 0.6760
Key Levels 0.6686, 0.6708, 0.6736, 0.6745, 6790, 0.6815, 0.6845, 0.6878, 0.6923, 0.6963