The pair continued to move down on Tuesday, testing the 8 EMA at 1.1834 (blue thin line), then rolled back up, closing the daily candlestick at 1.1839. Today, the price may continue to move down. News is expected at 14:00 UTC (dollar).
Trend analysis (Fig. 1).
The market may continue to move down from the level of 1.1839 (closing of Tuesday's daily candle) with the target of 1.1815 - the 38.2% retracement level (red dotted line). When testing this level, an upward pullback is possible with the target at 1.1837 - the lower fractal (yellow dashed line). Upon reaching this level, the upward movement may continue.
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 price may continue to move down from the level of 1.1839 (closing of Tuesday's daily candle) with the target of 1.1815 - the 38.2% retracement level (red dotted line). When testing this level, an upward pullback is possible with the target at 1.1837 - the lower fractal (yellow dashed line). Upon reaching this level, the upward movement may continue.
Alternative scenario: from the level of 1.1839 (closing of Tuesday's daily candle), the price may move down with the target at 1.1815 - the 38.2% retracement level (red dotted line). When testing this level, the downward movement may continue with the target of 1.1809 - the 21-day EMA (black thin line), where an upward rollback is possible.
