The US Dollar continues strengthening against all major rivals amid expectations of market participants of an interest rate hike by the Fed in the nearest future. Today, after the publication of positive data on the Producer Price Index in Australia, the pair rose but did not manage to consolidate above a strong resistance at 0.7600 and resumed its fall.
Today extra attention needs to be paid to data on the US GDP for the third quarter of the year. According to the forecasts of economists, on a year-to-year basis the index will show a 2.5% growth. At the same time, weak data might significantly pressure the US Dollar .
Support and resistance
On the 4-hour chart, the instrument is trading at the lower line of while bands are directed horizontally and the price range is widening. histogram is in the negative zone and its volumes are growing. is about to leave the oversold zone.
The indicators recommend short positions.
Support levels: 0.7137, 0.7565, 0.7556, 0.7544, 0.7534.
Resistance levels: 0.7597, 0.7607, 0.7622, 0.7643, 0.7652, 0.7668, 0.7679.
Short positions can be opened from the level of 0.7560 with the target at 0.7530 and stop-loss at 0.7576. Validity – 1-2 days.
Long positions can be opened from the level of 0.7575 with target at 0.7610, 0.7630 and stop-loss at 0.7555. Validity – 1-2 days.