After yesterday's collapse of stock indices around the world, today most of them are trying to adjust to the fall. The dollar index yesterday showed a slight increase, reaching the level of 89.57 as the reserve currency strengthened against the basket of major currencies during the American session.
Today,we expect the release of data from the US, such as the trade balance for December and the number of open vacancies on the labor market (JOLTS). Despite the fact that the reports for the previous two months were lower than expected, this month we expect an increase in the number of 21K. Furthermore, today a speech by FOMC member James Bullard will be made.
Considering our chart, we observe an upward trend. However, given that the pair has moved away from strong resistance levels and from the 1.2430 mark, we will expect a sell signal when the MACD crosses the zero mark and confirms our outlook for the sale. The second confirmation signal will be the fixing of the price under MA (86) and then our target will be the level of 1.2290.
We advise you to take short positions after the confirmation signal appears.
