Overview:
Probably, a strong support level will be set at 0.8888 (below the 50% Fibonacci retracement level in the 1H chart). Also at this level, a double bottom has been formed. The last bearish wave for the last month was created, and the level of 0.8990 became strong resistance. It should be noted that this level of 0.8990 turned into strong resistance on December 9, 2013 (it had been support before). The ratio of 161.8% equals 0.8991. The saturation is likely to take place around 0.8888, because this level is the second strong support for December 19 (the previouos support level was set at 1.8840). Therefore, it is possible that the market will start showing bullish signs. The daily support is placed at the level of 0.8888. In other words, long positions are recommended above 0.8888 with the first target at the 0.8950 level (the weekly resistance 1) and further at the 0.8980 level. The stop loss should be placed at 0.8840.
