The pair traded downward on Monday and tested the retracement level of 76.4% at 1.1836 (red dotted line), then the price went up. Upon moving up, the market tested the 13 EMA and closed the daily candle at 1.1859. Today the price may continue to move up. Based on the economic calendar, news is expected at 12:30 UTC (dollar).
Trend analysis (Fig. 1).
The market may continue moving upwards from the level of 1.1859 (closing of yesterday's daily candlestick) with the target at the retracement level of 23.6% at 1.1895 (blue dotted line). Upon testing this level, the price may continue to move upward with the target at the 38.2% retracement level at 1.1966 (blue dashed line). From this level, a downward movement is possible.
Fig. 1 (daily chart).
Comprehensive analysis:
- Indicator analysis - up;
- Fibonacci levels - up;
- Volumes - up;
- Candlestick analysis - up;
- Trend analysis - up;
- Bollinger lines - down;
- Weekly chart - up.
General conclusion:
Today, the price may continue moving upwards from the level of 1.1859 (closing of yesterday's daily candlestick) with the target at the 23.6% retracement level at 1.1895 (blue dashed line). Upon testing this level, the price may continue to move upward with the target at the 38.2% retracement level at 1.1966 (blue dashed line). From this level, a downward movement is possible.
Alternative scenario: the price may continue moving downward from the level of 1.1859 (closing of yesterday's daily candlestick) with the target at the historical support level at 1.1811 (blue dotted line). Upon testing this line, the price may begin to move upwards with the target at the 14.6% retracement level at 1.1852 (blue dashed line).
