FXCM's USDOLLAR basket declined off the CPI data release yesterday. It is now trading in its bearish channel between the lower blue and red bands.
The basket finds itself near the 12,750 level, which is regarded as an important support level (green shaded horizontal). If price drops below, the next level of support is 12,620 (red dashed horizontal).
We note that the stochastic has started to roll over (black ellipse). If it completes and moves towards its lower quintile (red rectangle), the 12,750 support level will have failed.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.