Since the beginning of this week, the pair continues strengthening amid some reduction in anxiety on the market. The Dollar was supported by data on Retail Sales that came out in the US on Friday. In January, the index grew by 0.2% that was slightly better than forecasts of economists. At the same time, the Turkish Lira remains under pressure due to growing tensions around the Syrian conflict.
Support and resistance
Bollinger Bands on the daily chart is turning horizontally while the price range is narrowing. MACD is growing and giving a quite strong buy signal. Stochastic is near the middle of its range and turning up again.
The indicators recommend waiting for clearer trading signals.
Support levels: 2.9295, 2.9173 (10 February low), 2.9000, 2.8893 (4 February low), 2.8702 (3 December 2015 low).
Resistance levels: 2.9534 (local high), 2.9631 (3 February high), 2.9837, 3.0050, 3.0268.
Long positions can be opened after the breakout of the level of 2.9534 with the target at 2.9837 and stop-loss at 2.9350. Validity – 1-2 days.
Short positions can be opened after the price rebound from the level of 2.9534 with the target at 2.9173 and stop-loss at 2.9750. Validity – 2-3 days.Publication source