Current trend
On Wednesday, the pair lost about 90 points.
The US dollar fell amid a slowdown in the growth in the Producer Price Index ex Food & Energy: the indicator showed an increase of 2.3%YoY (against the forecast of 2.7%). Investors continue to monitor the negotiations between the United States and Canada on the trade agreement, but it may take a long time before the deal is concluded.
Today, investors will focus on the publication of the US Consumer Price Index Ex Food & Energy (14:30 GMT+2), as well as data on the change in the number of Jobless Claims (14:30 GMT+2). Also, traders should pay attention to the publication of the Canadian New Housing Price Index (14:30 GMT+2). The market is expected to be highly volatile.
Support and resistance
On the H4 chart, there is a downward correction, the instrument is traded near the lower border of Bollinger Bands, the price range is expanded, which indicates a possible continuation of the downward movement. MACD histogram is in the negative zone, the signal line is crossing the zero line and the body of the histogram from above, forming a sell signal.
Support levels: 1.3000, 1.2980, 1.2935, 1.2900, 1.2885.
Resistance levels: 1.3042, 1.3100, 1.3125, 1.3160, 1.3205, 1.3225.
Trading tips
Sell orders may be opened from the current level with the target at 1.2900 and stop loss at 1.3040. Implementation time: 1-3 days.
Long positions may be opened from the level of 1.3100 with the target at 1.316 and stop loss at 1.3170. Implementation time: 3-5 days.
Trade
Scenario
Timeframe Intraday
Recommendation SELL
Entry Point 1.3010
Take Profit 1.2900
Stop Loss 1.3040
Key Levels 1.2885, 1.2900, 1.2935, 1.2980, .3000, 1.3042, 1.3100, 1.3125, 1.3160, 1.3205, 1.3225
Alternative scenario
Recommendation BUY STOP
Entry Point 1.3100
Take Profit 1.3160
Stop Loss 1.3070
Key Levels 1.2885, 1.2900, 1.2935, 1.2980, .3000, 1.3042, 1.3100, 1.3125, 1.3160, 1.3205, 1.3225
On Wednesday, the pair lost about 90 points.
The US dollar fell amid a slowdown in the growth in the Producer Price Index ex Food & Energy: the indicator showed an increase of 2.3%YoY (against the forecast of 2.7%). Investors continue to monitor the negotiations between the United States and Canada on the trade agreement, but it may take a long time before the deal is concluded.
Today, investors will focus on the publication of the US Consumer Price Index Ex Food & Energy (14:30 GMT+2), as well as data on the change in the number of Jobless Claims (14:30 GMT+2). Also, traders should pay attention to the publication of the Canadian New Housing Price Index (14:30 GMT+2). The market is expected to be highly volatile.
Support and resistance
On the H4 chart, there is a downward correction, the instrument is traded near the lower border of Bollinger Bands, the price range is expanded, which indicates a possible continuation of the downward movement. MACD histogram is in the negative zone, the signal line is crossing the zero line and the body of the histogram from above, forming a sell signal.
Support levels: 1.3000, 1.2980, 1.2935, 1.2900, 1.2885.
Resistance levels: 1.3042, 1.3100, 1.3125, 1.3160, 1.3205, 1.3225.
Trading tips
Sell orders may be opened from the current level with the target at 1.2900 and stop loss at 1.3040. Implementation time: 1-3 days.
Long positions may be opened from the level of 1.3100 with the target at 1.316 and stop loss at 1.3170. Implementation time: 3-5 days.
Trade
Scenario
Timeframe Intraday
Recommendation SELL
Entry Point 1.3010
Take Profit 1.2900
Stop Loss 1.3040
Key Levels 1.2885, 1.2900, 1.2935, 1.2980, .3000, 1.3042, 1.3100, 1.3125, 1.3160, 1.3205, 1.3225
Alternative scenario
Recommendation BUY STOP
Entry Point 1.3100
Take Profit 1.3160
Stop Loss 1.3070
Key Levels 1.2885, 1.2900, 1.2935, 1.2980, .3000, 1.3042, 1.3100, 1.3125, 1.3160, 1.3205, 1.3225