Yesterday the pair significantly declined after the US Fed made its Interest Rate Decision. As was expected, the rate remained unchanged at the current 0.5% but the regulator lowered its own forecasts of the pace of further tightening. In addition, the regulator acknowledged the existence of substantial risks for the growth of the US and world economies.
Tomorrow attention needs to be paid to the speeches by Fed officials and to data on in Canada.
Support and resistance
on the is moving down while the price range is widening, but the price currently remains outside of its borders. turned down and formed a sell signal. is near the oversold zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 1.3100 ( local low), 1.3037 (3 November 2015 low), 1.3000 (psychologically important level), 1.2951, 1.2900.
Resistance levels: 1.3164 ( local high), 1.3224, 1.3265, 1.3300 (psychologically important level), 1.3370, 1.3404 ( local high), 1.3457, 1.3500, 1.3586 (29 February high), 1.3650.
Long positions can be opened after the price rebound from the level of 1.3100 (with the appropriate indicators signals) with targets at 1.3200, 1.3265 and stop-loss at 1.3030. Validity – 2-3 days.
Short positions can be opened after the price consolidates below the level of 1.3100 with the target at 1.3000 and stop-loss at 1.3165. Validity – 2-3 days.