The pair traded downwards on Friday and tested 1.2160 - a 61.8% retracement level (presented in a red dotted line). Today, an upward pullback movement is possible. Nothing is expected for economic calendar news. The UK observes a day off and the market will be narrow.
Trend analysis (Fig. 1).
Today, an upward pullback is possible from the level of 1.2167 (closing of the Friday afternoon candle) with the target of 1.2213 - a 38.2% pullback level (presented in a red dashed line). If this line is reached, the upward movement may continue with the next target at the resistance line 1.2294 (presented in a red bold line).
Fig. 1 (daily chart).
Comprehensive analysis:
- Indicator analysis - up;
- Fibonacci levels - up;
- Volumes - up;
- Candlestick analysis - up;
- Trend analysis - up;
- Bollinger Lines - up;
- Weekly schedule - up.
General conclusion:
Today, the price may begin to move upward with the target of 1.2213 - a 38.2% pullback level (presented in a red dashed line).
Another possible scenario is a downward trend from the level of 1.2167 (closing of the Friday afternoon candle) with the target of 1.2129 - a 76.4% retracement level (presented in a red dashed line).
