Last week there were very few macroeconomic publications and the pair was trading in the narrow range. The pair was pressured by poor US data on Jobless Claims and Pending Home Sales that came out worse than forecasts.
Today attention needs to be paid to the ISM Manufacturing PMI in the US that is forecasted to fall to 49.0 points.
Support and resistance
On the , the pair is trading in the upper . Moving averages with 50, 100 and 144 periods remain below the price and directed up indicating an upward trend in the pair. histogram is in the positive zone and its volumes are falling. is falling, lines directed down.
Support levels: 1.3772 (middle MA of ), 1.3591, 1.3592, 1.3454.
Resistance levels: 1.4000 (middle of December high).
Long positions can be opened from current prices with the target at 1.4000 and stop-loss at 1.3830.
Short positions can be opened after the price consolidation below the level of 1.3772 with the target at 1.3660 and stop-loss at 1.3830.