Yesterday, after bouncing off from the support line of 1.3687 (red bold line), the pair went up and tested the 14.6% retracement level - 1.3750 (blue dotted line). And then, it closed the daily candlestick at 1.3734. As per the economic calendar, news is expected at 7.00 UTC (pound) and 17.00 UTC (dollar). The price may continue to move upward today.
Trend analysis (Fig. 1).
Today, the market will try to continue moving up from the level of 1.3734 (the closing of yesterday's daily candlestick) with a target of 1.3882 – the 38.2% retracement level (blue dotted line). When this level is reached, the price can continue to move up with a target of 1.3948 – the 50.0% retracement level (blue dotted line).
Figure 1 (Daily Chart).
Comprehensive analysis:
- Indicator analysis – up;
- Fibonacci levels – up;
- Volumes – up;
- Candlestick analysis – up;
- Trend analysis – up;
- Bollinger bands – up;
- Weekly chart – up.
General conclusion:
Today, the price will try to continue moving up from the level of 1.3734 (the closing of yesterday's daily candlestick) with a target of 1.3882 – the 38.2% retracement level (blue dotted line). When this level is reached, the price can continue to move up with a target of 1.3948 – the 50.0% retracement level (blue dotted line).
Unlikely scenario: from the level of 1.3734 (the closing of yesterday's daily candlestick), the pair will try to start moving down with the target of 1.3693 – the support line (red bold line). When this line is reached, the price may start moving up with a target of 1.3750 – the 14.6% retracement level (blue dotted line). And upon reaching this line, the price will continue to move up.
