The presuppositions of the previous analysis concerning the probable continuation of the lateral consolidation within the range limited with the levels of resistance at 1.4450/60 an support at 1.4300/1.4280 are confirmed; at the very moment the pair is traded next to 1.4310/20. The indicators demonstrate the maintaining of the weakening in the “bears” tunes – R% makes attempts to get out of the oversold zone, MACD further uplifts the histograms within the negative sector and denotes the probability of the divergence formation. Most likely, this very situation together with the strong supports at the levels of 1.4300/1.4250 which have already proved the status of strong resistances/supports in the spring and summer of the current year relinquish the high probability of lateral movement lasting within the before formed range. Nevertheless, the preference of the “bears” positions is confirmed with the price attendance within the descendant channel (the blue punctured lines); the support breakage at 1.4250 with the trading fixation lower will afford ground to consider the descendant trend still prolonged till 1.4180 and even to 1.4100/10 possibly. It’ll be possible to suggest the change of mood at the market and descendant trend reverse in case of price growth higher than 1.4670/80.

Analysis prepared by:

Arkady Nagiev
Forex4you analyst