The pair moved up on Tuesday, and tested the 21-day EMA at 1.3653 (black thin line), then went down, closing the daily candle at 1.3622. Today, the market may move down. News is expected at 08:30 UTC (pound) and 12:15, 14:30 UTC (dollar).
Trend analysis (Fig. 1).
The market may move down from the level of 1.3622 (closing of yesterday's daily candle) to reach 1.3590 - the 23.6% retracement level (blue bold line). In the case of testing this level, the price may continue to move down with the target of 1.3556 - the 38.2% retracement level (blue dashed line). Much will depend on the news that comes out at 12:15 UTC.
Fig. 1 (daily chart)
Comprehensive analysis:
- Indicator analysis - down;
- Fibonacci levels - down;
- Volumes - down;
- Candlestick analysis - down;
- Trend analysis - down;
- Weekly chart - down;
- Bollinger lines - down.
General conclusion:
Today, the price may move down from the level of 1.3622 (closing of yesterday's daily candle) to reach 1.3590 - the 23.6% retracement level (blue bold line). In the case of testing this level, the price may continue to move down with the target of 1.3556 - the 38.2% retracement level (blue dashed line). Much will depend on the news that comes out at 12:15 UTC.
Unlikely scenario: from the level of 1.3622 (closing of yesterday's daily candle), the price may move down with the target of reaching 1.3590 - the 23.6% retracement level (blue bold line). In the case of testing this level, the price may move upward with the target of 1.3660 - the 50.0% retracement level (yellow dashed line).
