Current trend, Today, the pair fell below 1.2480, updating the annual minimum.

The negotiations on Brexit remains the focus of investors' attention. Yesterday, Theresa May postponed a vote in the UK Parliament on a deal with the EU for an indefinite period. This time is planned to be used to solve the Irish border issue.  Meanwhile, the Conservative Party is discussing the possibility of a vote of no-confidence in the Prime Minister.

USD strengthened yesterday amid the publication of favorable macroeconomic data. The producer price index increased by 0.1% MoM, above the forecast, and by 2.5% YoY. A similar index, excluding food and energy, recorded an increase of 0.3% MoM and 2.7% YoY.

Today, investors will pay attention to the publication of the Consumer Price Index in the US in November. CPI is expected to fall from 2.5% to 2.2% YoY and MoM it may drop to 0.0% from 0.3% a month earlier. Core CPI is projected to rise from 2.1% to 2.2%. If the forecast proves correct, it can support USD.

Support and resistance

On the H4 chart, there is a downward correction, the instrument is traded between the lower and middle borders of Bollinger Bands, the price range is expanded, which indicates a possible continuation of the downward movement. MACD histogram is in the negative zone, the signal line is crossing its body from below, forming a strong signal for the opening of short orders.

Support levels: 1.2507, 1.2476, 1.2439, 1.2400.

Resistance levels: 1.2562, 1.2637, 1.2658, 1.2695, 1.2724, 1.2761.

Trading tips

Short positions may be opened from 1.2470 with the target at 1.2400 and stop loss at 1.2500. Implementation period: 1-3 days.

Long positions may be opened from 1.2761 with the target at 1.2820 and stop loss at 1.2725. Implementation period: 2-5 days.

Alternative scenario

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