The pair traded upward on Tuesday and tested the resistance at 1.3800 (blue dotted line), then the pair went down, closing the daily candle at 1.3751. Today, the upward movement may resume. Based on the economic calendar, news is expected at 08:30 UTC (pound), and at 12:15, 14:00, 14:30 UTC (dollar).
Trend analysis (Fig. 1).
The market may continue to move downward from the level of 1.3751 (closing of yesterday's daily candle) with the target at 1.3728 - the 38.2% retracement level (yellow dashed line). In the case of testing this level, an upward pullback is possible with the target of 1.3790 - the 50.0% retracement level (blue dashed line).
Fig. 1 (Daily chart).
Comprehensive analysis:
- Indicator analysis - up;
- Fibonacci levels - up;
- Volumes - up;
- Candlestick analysis - up;
- Trend analysis - up;
- Weekly chart - up;
- Bollinger lines - down.
General conclusion:
Today, the price may continue to move downward from the level of 1.3751 (closing of yesterday's daily candlestick) with the target at 1.3728 - the 38.2% retracement level (yellow dashed line). In the case of testing this level, an upward pullback is possible with the target of 1.3790 - the 50.0% retracement level (blue dashed line).
Alternative scenario: the price may begin to move downward from the level of 1.3751 (closing of yesterday's daily candle) with the target at 1.3703 - the 50.0% retracement level (yellow dashed line). A test of this level may form an upward pullback.
