The support in the zone around 108.00 turned out to be very strong and although the pair dropped all the way to 107.30 it quickly rebounded and moved to the upside, climbing with 350 pips only for a few days.
The resistance it is facing now is in the zone around 110.80 – 111.00.
In case the pair manages to break out above that zone we could expect a rally to 114.00 – 114.50. However, for that to happen we’d first have to see a range forming between the trend line it broke out above (in blue) and the middle line of the Bollinger Bands indicator on the W1 time frame.
In an alternate scenario the pair will break out to the upside and form an impulse rally.
In the third scenario it will renew its move to the downside and it will test the support around 108.00.
I have no preference among these scenarios and I intend to simply trade depending on what I see on the charts. We’ll see which scenario the market will pick.
Good tip! I'll keep it in mind.
ReplyDeleteIt's testing the resistance at 110.80.
ReplyDeleteInteresting analysis, thanks.
ReplyDeleteWell spotted, will keep it in mind!
ReplyDeleteImportant levels to keep in mind!
ReplyDeleteSmall gap up.
ReplyDeleteGood insight.
ReplyDelete