Current trend
The pair started to consolidate after significant rally of this week, caused by the minutes of the last meeting of the US Fed. Positive picture of the minutes provided support to the bulls. Members of the Open Market Committee expressed concern about low inflation rate. They discussed preservation of interest rates; therefore, the minutes did not mention probability of the rise in rates after the completion of the program to purchase public bonds.
Support and resistance
The nearest resistance level is yesterday’s highs of 1.6820. Next resistance level is 1.6877 – the highs of 16 November 2009.
Support levels are 1.6754 (yesterday’s lows), 1.6680 (Fibonacci line of 38.2%), 1.6600 (lows of 8 April, moving average with the period of 55 days), 1.6500 (moving average with the period of 100 days, important psychological level).
Trading tips
It is recommended to open short positions after breakdown of the level of 1.6754 with stop loss at 1.6800 and a target of 1.6680.
Andrey Cherkas
Analyst of LiteForex Group of Companies
