On Friday, the pair tested the upper fractal 1.1851 (daily candle from 09/08/2021), then went down to 1.1808 - the 21-day EMA (black thin line), and closed the daily candle at 1.1809. Today, the downward movement may continue. News is expected at 13:30 UTC (euro).
Trend analysis (Fig. 1).
The market may continue to move down from the level of 1.1809 (closing of Friday's daily candle) with the target of 1.1786 - the 50.0% retracement level (red dotted line). When testing this level, an upward pullback may form with the target at 1.1811 - the historical resistance level (blue dotted line). Upon reaching this level, continued upward movement is expected.
Fig. 1 (Daily chart)
Comprehensive analysis:
- Indicator analysis - down;
- Fibonacci levels - down;
- Volumes - down;
- Candlestick analysis - up;
- Trend analysis - up;
- Bollinger lines - down;
- Weekly chart - down.
General conclusion:
Today, the price may continue to move down from the level of 1.1809 (closing of Friday's daily candle) with the target at 1.1786 - the 50.0% retracement level (red dotted line). When testing this level, an upward pullback may form with the target at 1.1811 - the historical resistance level (blue dashed line). Upon reaching this level, continued upward movement is expected.
Alternative scenario: the price may continue to move down from the level of 1.1809 (closing of Friday's daily candle) with the target at 1.1786 - the 50.0% retracement level (red dashed line). When testing this level, the price may continue to move down with the target of 1.1757 - the 61.8% retracement level (red dashed line), where an upward pullback is expected.
