Since the beginning of last week, the pair is in consolidation having fallen by 50 points for the week. At the same time, yesterday the fall continued amid the publication of weak data in the US and due to uncertainty regarding the pace of interest rates hikes in the US.
Today attention needs to be paid to data on Building Permits and the Core Consumer Price Index in the US. According to forecasts, the indices will grow that might support the US Dollar .
Support and resistance
On the 4-hour chart, the pair is trading on the middle MA of and the bands are directed horizontally. histogram is near the zero line. turned up as it bounced off the border of the oversold zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 1.2851, 1.2825, 1.2800, 1.2780.
Resistance levels: 1.2880, 1.2906, 1.2933, 1.2961, 1.2979, 1.3001.
Long positions can be opened from current prices with targets at 1.2933, 1.2961 and stop-loss at 1.2851. Validity – 1-2 days.
Short positions can be opened after the price rebound from the level of 1.2880 with targets at 1.2825, 1.2800 and stop-loss at 1.2906. Validity – 1-2 days.