The pair is expected to trade with a bearish outlook as far as the key resistance holds at 0.9680. The pair remains below its horizontal resistance at 129.50, and is consolidating around its 20-period and 50-period moving averages. In her testimony to the Senate Banking Committee on Thursday, Federal Reserve Chairwoman Janet Yellen pointed out, “We’re watching inflation very carefully in light of low readings, I think it’s premature to conclude that the underlying inflation trend is falling well short of 2%. I haven’t reached such a conclusion. I think it (3% growth target set by the Donald Trump administration) would be quite challenging.”
Therefore, as long as 0.9680 holds as the key resistance, we expect a break below the nearest support at 0.9615 at first.
Chart Explanation: The black line shows the pivot point; the present price above pivot point indicates the bullish position and below pivot points indicates the short position. The red lines show the support levels and the green line indicates the resistance levels. These levels can be used to enter and exit trades.
Strategy: SELL, Stop Loss: 0.9680, Take Profit: 0.9615
Resistance levels: 0.9700, 0.9730, and 0.9775
Support levels: 0.9615, 0.9600, and 0.9575
The material has been provided by InstaForex Company – www.instaforex.com