There was the US secondary market home sales positive publication. However the data came out at the level 5,36M, the forecast was 5,40M. The dollar rally comes to the end; traders have already priced in a bet the December Fed raising interest rates forecast. The final decision will depend on the Fed economic data, so the personal consumption expenditures deflator which will be released on Wednesday will determine whether the US monetary tightening cycle starts in 2015 or not.
The buyers’ previous attempts to break through above the resistance level of 122.40 were unsuccessful. The pair rebounded downward from this level.
The price is finding the first support at 122.40, the next one is 121.30. The price is finding the first resistance at 123.20, the next one is at 123.80.
The price is in the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement and form a “Dead Cross”.
The MACD indicator is in a neutral territory. The price is decreasing.
The potential decrease targets are two levels of support: 122.40 and 121.30.