Level 1.5830 turned out to be a good support – the price recommenced its growth and is now testing 1.5910/20 resistance. Indicators are still “bullish”, but the readings seem to be weakening, which can be possibly considered as lack of significant changes and, therefore, gives enough reasons to anticipate further sideways consolidation. Should the price breach 1.5910/20 level and retrace to the uptrend channel (red lines) sector, it’ll be considered a strong “bullish” sentiment. In this case trades will rise up to 1.5990/1.6000 levels. If correction declines below 1.5750/40 level, the pair will most likely recommence a downtrend and plunge to 1.5430, 1.5270 targets. When the price holds below 1.5830/00 support, it’ll be the first signal for a possible reversal down.
The “bulls” made another attempt to push the trades up and test previously breached uptrend channel (red) line. As for now, the price has only managed to rise to 1.3280/85 level yet, although indicators suggest further growth. Trading is currently carried out at 1.3270/75 level, which gives reasons to expect the price to finally reach the above mentioned target around 1.3290/1.3300 level. If this barrier on the way up is successfully breached, the price will most likely ascend further up to 1.3380 and then to 1.3490/1.3500 level. Before 1.3290 level is breached, reversal down is possible and decline below 1.3100 will be a sign of another “bearish” trend. New local minimums at 1.2970/60 and 1.2870/80 levels will be the first targets for decline.
Analysis by: Forex4you written by Forex4you analyst Arkady Nagiev
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