On the background of a strengthening of the dollar our pair is trading in a downtrend.
Today data in Australia on the trade balance surpassed expectations. However, following the trend our pair has been trading in a corridor for the second consecutive week at 0.7640-0.7790.
If we break through our resistance level, which is currently at the 0.7650 mark, our pair will likely lower. Therefore, we expect a downward movement.
Our technical indicators also confirm the sell signal. On the four-hour chart the price moved away from the upper boundary of the Bollinger Band, but it did not reach the bottom line. Furthermore, the pair fell below the MA (20) which may indicate a continuation of the trend.
The volume indicator practically does not fluctuate, and the MACD cannot depart from the zero mark, stuck inside the histogram. Therefore, we advise to take short positions when the pair retreats from the moving average and set medium-term goals to 0.7650 and 0.7620.
