Today the pair is growing as it correcting up after a significant fall of the beginning of the week. The pair is supported by stock market instability in China. Despite today’s data on Trade Balance in China that showed a growth to 60.8 billion USD, investors have serious worries about the Chinese economy and consider precious metals as the safe-haven assets.
Today attention needs to be paid to data on MBA Mortgage Applications in the US. Growth in the index might support the USD.
Support and resistance
On the 4-hour chart, the pair is trading in the lower Bollinger band. Moving averages with 50, 100 and 144 periods remain above the price and directed down indicating a descending trend in the pair. MACD histogram is in the negative zone while its volumes remain unchanged. ADX indicate a fall in the pair, DI lines cross each other and directed down.
Support levels: 13.73, 13.67 (middle of December lows).
Resistance levels: 13.85, 14.00, 14.11, 14.30.
Long positions can be opened after the breakout of the level of 13.85 with targets at 14.00, 14.11 and stop-loss at 13.75. Validity – 1-2 days.
Short positions can be opened after the breakdown of the level of 13.73 with targets at 13.65, 13.50 and stop-loss at 13.85. Validity – 1-2 days.