On Thursday, the pair traded volatile amid the ECB, Bank of England and the US Fed meetings. As was expected the Fed decided to postpone its monetary policy tightening decision as the majority of members suggest current risks in the economy are balanced. The labour market continues strengthening, just not as fast as earlier estimated. The bigger problem remains inflation and the regulator assumes it will stay below its 2% target until 2018.
Support and resistance
Bollinger Bands on the daily chart is moderately growing, while the price range is widening. MACD is also growing and giving a weak buy signal. Stochastic is in the overbought zone and trying to turn down thus indicating a possibility of a downward correction.
The indicators recommend waiting for a clearer trading signal.
Support levels: 1141.60, 1136.37 (8 October low), 1127.80, 1121.11, 1115.70, 1110.00, 1105.05 (2 October low), 1101.05, 1098.50 (11 September low).
Resistance levels: 1148.43 (local high), 1153.46 (7 October high), 1156.40 (24 September high), 1160.00, 1166.20, 1169.81 (24 August high).
Long positions can be opened from current prices with the target at 1170.00 and stop-loss at 1145.00. Validity – 3-4 days.
Short positions can be opened after the breakdown of the level of 1141.82 with the target at 1123.00 and stop-loss at 1143.00. Validity – 3-4 days.Publication source