Yesterday, the pair unexpectedly worked out a strong low (93 points) on the news, but then the trend took its toll, and the daily candlestick closed with a white doji, breaking up the historical resistance level of 1.2234 (blue dotted line). Today, the price may continue to move down. As per the economic calendar, news is expected at 13.30, 15.00 UTC (dollar).
Trend analysis (Fig. 1).
Today, the market from the level of 1.2242 (closing of yesterday's daily candlestick) in the morning will try to continue moving down with the target of 1.2177 resistance level (blue thick line). After testing this level, the price may start moving up with the target of 1.2274 – an 85.4% pullback level (yellow dotted line).
Figure 1 (Daily Chart).
Comprehensive analysis:
- Indicator analysis - down
- Fibonacci levels - down
- Volumes - down
- Candlestick analysis - down
- Trend analysis - down
- Bollinger bands - up
- Weekly chart - up
General conclusion:
Today, the price from the level of 1.2242 (closing of yesterday's daily candlestick) can continue to move down with the target of 1.2177 resistance level (blue thick line). After testing this level, the price may start moving up with the target of 1.2274 – an 85.4% pullback level (yellow dotted line).
Unlikely scenario: when working down to reach the resistance level of 1.2177 (blue bold line), it is possible to work down with the target of 1.2117 - a 23.6% pullback level (red dotted line).
The material has been provided by InstaForex Company - www.instaforex.com