Current trend
Last week the pair reached key resistance level of 1.6810. At this level many investors took profit of long positions and opened short positions. Interest to the cheap USD has increased and demand for the American currency has grown significantly. Additional pressure on the pair was caused by favourable data on the US labour market. Last Friday the pair fell to the level of 1.6710. The main catalysts of the movement in the pair will be US stock status report.
Support and resistance
The pair is likely to stay in the ascending channel and experience deep correction to support levels of 1.6700, 1.6660 and 1.6600. Positive data on the US retail sales will support the USD and the pair will resume the rise. Target level in the medium-term is 1.6900.
Support levels: 1.6700, 1.6660, 1.6600, 1.6570, 1.6550 and 1.6470.
Resistance levels: 1.6810, 1.6900, 1.6950 and 1.7000.
Trading tips
It is recommended to open long pending positions from the level of 1.6660 with take profit at 1.6900.
Dmitriy Likhachev
Analyst of LiteForex Group of Companies
