Current trend
Yesterday the pair significantly fell amid the publication of poor data on the Consumer Price Index in New Zealand. In the fourth quarter of 2015, the index fell to 0.1% while economists predicted a 0.4% growth.
Today extra attention needs to be paid to data on the Consumer Price Index in the US. A growth in the index can add to the pressure on the pair. High volatility is expected on the market.
Support and resistance
On the 4-hour chart, the pair is trading near the lower MA of Bollinger Bands. Moving averages with 50, 100 and 144 periods remain above the price and directed down indicating a negative trend in the pair. MACD histogram is in the negative zone and its volumes are growing. ADX is directed horizontally, while DI lines move in opposite directions.
Support levels: 0.6313, 0.6220.
Resistance levels: 0.6466, 0.6576, 0.6718, 0.6771, 0.6878, 0.6953.
Trading tips
Open short positions from current prices with targets at 0.6313, 0.6300 and stop-loss at 0.6410. Validity – 1-2 days.
Pending buy orders can be placed at the level of 0.6466 with the target at 0.6576 and stop-loss at 0.6410. Validity – 1-2 days.
