The USD has managed to drag the pair towards new lows today, but unfortunately the pair is facing a tough support area, has dropped below two important support levels, but the bears weren’t strong enough to hold the rate there. We’ll have to be patient to see what will happen in the coming hours because we could still have a valid breakdown, which will open the door for more declines, however we cannot exclude a throwback movement if the support area will hold and if will reject the price.
The Cable has dropped on the mixed United Kingdom data, the Manufacturing Production rose by 1.3% in November, exceeding the 0.6% estimate, the production has increased again after the 1.0% drop from October, while the Industrial Production rose by 2.1%, beating the 0.8% estimate, the economic indicator has increased again after three decreasing months, but has failed to boost the Pound. Moreover the Goods Trade Balance has dropped again, from -9.9B to -12.2B, has come in worse than the -11.2B estimate, while the Construction Output has dropped by 0.2%, even if the traders have expected to see a 0.3% growth.
The price has fallen below the 1.2089 static support and below the lower median line (LML) of the major descending pitchfork, but has failed to stay there, we could have a false breakdown if the USDX will close the days much below the 102.54 static resistance, the index has climbed above this upside obstacle in the afternoon, but the sellers have forced the rate o decrease again.
We’ll have a larger decrease if the price will have enough energy to escape from the extended sideways movement, we have to wait for a fresh new trading signal because right now we don’t have a trading opportunity. We could have a great buying opportunity if the price will climb again above the upper median line (uml) of the minor descending pitchfork, we could o long if we’ll have a accumulation movement, a rejection here could send the rate even towards the median line (ML) of the major descending pitchfork.