The pair traded upward on Tuesday and tested 1.2275 - an 85.4% retracement level (yellow dashed line), closing slightly below 1.2247. Today, the market may continue to move up. As per the economic calendar, dollar news is expected at 15:00 and 15:30 UTC.
Trend analysis (Fig. 1).
The market may continue to move upward from the level of 1.21247 (closing of yesterday's daily candlestick) with the target at 1.2328 - the upper border of the Bollinger line indicator (black dotted line). Upon reaching this level, the upward trend may continue with the next target at the historical resistance level 1.2462 (blue dotted line).
Figure: 1 (daily chart).
Comprehensive analysis:
- Indicator analysis - up;
- Fibonacci levels - up;
- Volumes - up;
- Candlestick analysis - up;
- Trend analysis - up;
- Bollinger lines - up;
- Weekly chart - up.
General conclusion:
Today, the price may continue to move upward with the target at 1.2328 - the upper border of the Bollinger line indicator (black dotted line). Upon reaching this level, the upward trend may continue with the next target at the historical resistance level 1.2462 (blue dotted line).
Alternative scenario: upon reaching 1.2275 - an 85.4% retracement level (yellow dashed line), the price may start moving down to the support level 1.2177 (blue bold line).
