Yesterday the pair substantially grew.
The pair keeps being pressured by strengthening US Dollar that was significantly supported after the publication of strong labour market statistics in the US that came out on Friday. According to the Bureau of Labor Statistics, in December the Nonfarm Payrolls amounted to 292 thousands, while economists predicted 200 thousands.
At the same time, the pair was supported by data on Building Permits from New Zealand. In November, the index grew by 1.8% against the previous month that was the 10th consecutive month of growth.
Support and resistance
Bollinger Bands on the daily chart is moving down while the price range is narrowing from the top. MACD is falling and giving a sell signal. Stochastic is in the oversold zone and trying to turn up.
The indicators recommend waiting for clearer trading signals.
Support levels: 0.6534 (local low), 0.6500 (11 January low), 0.6457, 0.6428 (18 November low), 0.6400.
Resistance levels: 0.6560 (local high), 0.6600, 0.6660 (7 January high), 0.6690, 0.6724, 0.6787, 0.6835, 0.6865, 0.6882 (28 December high), 0.6900.
Long positions can be opened after the breakout of the level of 0.6570 (with the appropriate indicators signals) with targets at 0.6640, 0.6700 and stop-loss at 0.6520. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 0.6500 with targets at 0.6440, 0.6400 and stop-loss at 0.6540. Validity – 2-3 days.