The pair traded upward on Wednesday and tested the level of 76.4% at 1.1851 (blue dotted line), then went down, closing the daily white candlestick at 1.1834. Today, a rollback downward is possible. Based on the economic calendar, news is expected at 12:30 UTC (dollar).
Trend analysis (Fig. 1).
The market may roll back down from the level of 1.1834 (closing of yesterday's daily candle) to test the retracement level of 23.6% at 1.1810 (red dotted line). Upon reaching this level, the price may move upward with the target at 1.1857 - the upper fractal (red dotted line). A test of this level may resume the upward movement.
Fig. 1 (Daily chart).
Comprehensive analysis:
- Indicator analysis - down;
- Fibonacci levels - down;
- Volumes - down;
- Candlestick analysis - down;
- Trend analysis - up;
- Bollinger lines - up;
- Weekly chart - up.
General conclusion:
Today, the market may roll back down from the level of 1.1834 (closing of yesterday's daily candle) to test the retracement level of 23.6% at 1.1810 (red dotted line). Upon reaching this level, the price may move upward with the target at 1.1857 - the upper fractal (red dotted line). A test of this level may resume the upward movement.
Alternative scenario: from the level of 1.1834 (closing of yesterday's daily candle), the price may roll back down to test the retracement level of 14.6% at 1.1828 (red dotted line). Upon reaching this level, the price may continue to move upward with the target at 1.1873 - the 85.4% retracement level (blue dashed line). A downward pullback may form upon testing this level.
