Yesterday the pair showed choppy trade and closed at its opening level. The price was pressured by growth in the European stock markets and Fed Chair Janet Yellen testimony before the US Congress.
As was expected, the regulator’s stance on monetary policy tightening remained unchanged and the decision to increase interest rates will depend on the state of the economy. At the same time, Yellen pointed out that economic conditions necessary to continue gradual tightening are still in place.
Support and resistance
Bollinger Bands on the daily chart is moving up while the price range is widening. However, the price remains near its upper border indicating a possibility of a descending correction. MACD slowed its growth but still giving a strong buy signal. Stochastic is in the overbought zone and trying to turn down.
The indicators recommend waiting for clearer trading signals.
Support levels: 15.25 (local low), 15.15, 15.07 (10 February low), 14.90, 14.78, 14.63 (5 February low), 14.55, 14.48.
Resistance levels: 15.44 (8 February high), 15.62 (30 October 2015 high), 15.84, 16.00, 16.10, 16.34 (28 October high).
Long positions can be opened after the breakout of the level of 15.50 (with the appropriate indicators signals) with the target at 16.00 and stop-loss at 15.30. Validity – 2-3 days.
Short positions can be opened after the price rebound from the level of 15.44 with targets at 15.25, 15.00 and stop-loss at 15.60. Validity – 2-3 days.