Yesterday the pair significantly fell amid the publication of weak statistics on manufacturing production in China. In addition, the pair was pressured by today’s labour market data from New Zealand, where the Unemployment Rate grew from 5.3% to 5.7% while economists predicted a growth to 5.5%.
Today attention also needs to be paid to data on the ADP Employment Change and Trade Balance in the US. According to forecasts, the trade balance deficit will shrink to 41.5 billion USD, while the number of employed will amount to 196 thousands. The data could provide additional support to the US Dollar .
Support and resistance
On the 4-hour chart, the pair is falling along the lower MA of . histogram is near the zero line. is turning up in the oversold zone.
Support levels: 0.6885, 0.6850, 0.6820, 0.6800.
Resistance levels: 0.6915, 0.6930, 0.6960, 0.6980, 0.7000, 0.7040, 0.7070.
Long positions can be opened from current prices with targets at 0.6930, 0.6960, 0.6980 and stop-loss at 0.6870. Validity – 1-2 days.
Short positions can be opened from the level of 0.6860 with targets at 0.6820, 0.6800 and stop-loss at 0.6885. Validity – 1-2 days.