The pair substantially grew in the end of last week but could not renew its Tuesday highs.
The Dollar continues strengthening amid growing expectations of monetary policy tightening by the Fed before the end of the year. Commentaries from the Fed officials are actively supporting the mood. They note that an interest rate hike should not be delayed because the economy is close to full employment while inflationary expectations are gradually increasing.
At the same time, the Dollar was slightly pressured by data on Initial Jobless Claims in the US. The index rose from 247 to 260 thousands that was worse than expectations of economists who predicted an increase to only 250 thousands. At the same time, the Philadelphia Fed Manufacturing Survey fell from 12.8 to 9.7 points that exceeded the forecasts of a decline to 5.3 points.
Support and resistance
Bollinger Bands on the daily chart is turning horizontally while the price range is narrowing from the bottom. MACD is falling and giving a weak sell signal. Stochastic is growing having bounced off the border of the oversold zone.
The indicators recommend waiting for clearer trading signals.
Support levels: 3.0750 (local low), 3.0649, 3.0511 (20 October low), 3.0379 (7 October low), 3.0264, 3.0111, 3.0000 (psychologically important level), 2.9926.
Resistance levels: 3.0866 (local high), 3.1000, 3.1133 (18 October high).
Trading tips
Long positions can be opened after the price consolidation above the level of 3.0886 with targets at 3.1133, 3.1150, 3.1200 and stop-loss at 3.0750. Validity – 2-3 days.
Short positions can be opened after the breakdown of the level of 3.0735 with targets at 3.0511, 3.0379 and stop-loss at 3.0890. Validity – 2-3 days.
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