Yesterday the pair opened with a significant gap down amid the publication of poor data in New Zealand. The number of building permits in January shrank by 8.2%, while the ANZ Business Confidence fell from 23 to 7.1 points that was substantially worse than expectations.
At the same time, later in the day the pair was supported by poor data from the US on the Chicago Purchasing Managers’ Index. In February, the index fell from 55.6 to 47.6 points while economists forecasted a fall to 53.0 points.
Bollinger Bands on the daily chart are moving horizontally. MACD is slowly falling and giving a weak sell signal. Stochastic is falling as well but has reached the oversold zone now, thus limiting the potential for a further fall in the pair.
The indicators recommend waiting for clearer trading signals.
Support levels: 0.6600 (local low), 0.6562 (19 and 29 February lows), 0.6534 (3 February low), 0.6500, 0.6461 (2 February low), 0.6416 (27 January low).
Resistance levels: 0.6622 (local high), 0.6660, 0.6697, 0.6725, 0.6752 (5 February high), 0.6787.