Last week the pair significantly fell.
The pair was pressured by the latest Fed meeting that substantially decreased chances of further interest rate hikes in the US. In addition, the USD was pressured by poor data on the Nonfarm Payrolls that fell from 262 to 151 thousands, while economists predicted 190 thousands. However, the Unemployment Rate unexpectedly fell by 0.1% to 4.9%, while Average Hourly grew by 0.5%.
Support and resistance
on the is turning down while the price range is widening. At the same time, the indicator formed a signal for correctional growth as the price has left the range. is falling and giving a strong sell signal. is in the oversold zone and turning horizontally.
The indicators recommend waiting for clearer trading signals.
Support levels: 0.9920 ( local low), 0.9900, 0.9879 (11 January low), 0.9851 (24 December low), 0.9818, 0.9800, 0.9784 (14 December low).
Resistance levels: 0.9956 ( local high), 1. 0000 (psychologically important level), 1.0032, 1.0067, 1.0100, 1.0123 (3 February high), 1.0166, 1.0200, 1.0254 (29 January high), 1.0281.
Long positions can be opened after the breakout and consolidation above the level of 1. 0000 (with the appropriate indicators signals) with the target at 1.0100 and stop-loss at 0.9960. Validity – 2-4 days.
Short positions can be opened after the price rebound from the level of 1. 0000 with the target at 0.9900 and stop-loss at 1.0050. Validity – 2-3 days.