The pair traded on the upper part of the trading range on Tuesday but could not break through 1.2494 - a 61.8% retracement level (presented in a red dotted line). After this, the market slightly rolled down. Today, a continuation with the upward movement is expected. Economic calendar news for the dollar is expected at 12:30, 14:00, 14:30, 18:00, and 18:30 UTC.
Trend analysis (Fig. 1).
Today, the pair may continue to move upward from the level of 1.2426 (closing of yesterday's candle) with the first target at the upper fractal 1.2518. If this level is broken upwards, the price may continue to move upward with the target of 1.2552 - a 76.4% retracement level (presented in a red dashed line). In case of testing this level, a downward pullback is possible, while maintaining an upward trend. The main news of the day comes out at 18:00 UTC which is about the US interest rates. The possibility of an upward trend is higher.
Fig. 1 (daily chart).
Comprehensive analysis:
- Indicator analysis - up;
- Fibonacci levels - up;
- Volumes - up;
- Candlestick analysis - down;
- Trend analysis - up;
- Bollinger Lines - up;
- Weekly schedule - up.
General conclusion:
Today, the price may continue to move up with the target of 1.2552 - a 76.4% retracement level (presented in a red dashed line).
Another possible scenario is a bearish trend from the level of 1.2494 - a 61.8% retracement level (presented in a red dashed line) with a target of 1.2357 - a 23.6% retracement level (presented in a blue dashed line). If this level is broken downwards, the price may continue to move downward with the target at the lower fractal 1.2247 (presented in a red dashed line).
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