Last week, the pair declined after rebounding from the resistance level of 1.2177 (yellow bold line), but strong news on Thursday nullified all the work of the bears, which resulted in a side channel on the weekly candle. This week, the price will most likely resume its upward movement.
Trend analysis
The price from the level of 1.2111 (closing of the last weekly candle) may continue to increase this week to the first target, which is the resistance level of 1.2177 (yellow bold line). Upon reaching this level, the upward movement can continue to the target of 1.2274 – a pullback level of 85.4% (blue dotted line).
Figure 1 (weekly chart)
Comprehensive analysis:
- indicator analysis - up;
- Fibonacci levels - up;
- volumes - up;
- candlestick analysis - up;
- trend analysis - up;
- Bollinger lines - up;
- monthly chart - up.
An upward movement can be concluded based on comprehensive analysis.
The overall result of the candlestick calculation on the weekly chart: the price is likely to have an upward trend this week, with no lower shadow in the weekly white candlestick (Monday - up) and no upper shadow (Friday - up).
The first upward target is the resistance level of 1.2177 (yellow bold line). Upon reaching this level, the upward movement will continue to the target of 1.2274 – a pullback level of 85.4% (blue dotted line).
An unlikely scenario: the price from the level of 1.2111 (closing of the last weekly candle) may decline to the target of 1.1952 – a pullback level of 14.6% (red dotted line). Upon reaching this level, it can move to the upward target, which is the resistance level of 1.2177 (yellow bold line).
