The December Import Price Index was published in the US: the forecast was -1,4% m/m vs. the previous data – 0,5% m/m. The data came in at the level 1,2% m/m. The dollar has lost its past achievements after the Fed’s Beige Book publication. According to the report the weak wage growth pressure as well as the general price pressure is minimal. The report generated some speculations that the Fed would not rush to increase the interest rates in such circumstances.
The first support resides at 0.9960, the next is at 0.9850. The first resistance stands at 1.0100, the next one is at 1.0190.
The indicator shows a strong buy signal. The price is above the Cloud and in above the Chincou-span. The Tenkan-sen and the Kijun-sen show a horizontal movement forming a “Golden Cross”. The upward movement will be until the price is above the Cloud.
The MACD indicator is in a positive territory. The price is growing.
We advise to long with the first target – 1.0100. When the pair consolidates above the first target, we can open deals to the level of 1.0190.