The market has proved the predictions of the previous commentary; the price has still stayed within the lateral range with the edges of 1.6250/40-1.6100/1.6090; the attempt to decrease the support has completed with the level contingence at 1.6050; thereupon the price hastily came back to 1.6140/50. The indicators still demonstrate the weakening of the “bears” mood, R% got out of the oversold zone and makes attempts to fix itself higher than the trimming line, MACD maintains the threaten of the “bulls” divergence formation, but SS continues the decrease though it has retarded the tempos. Obviously, the trading consolidation will continue; and at the moment the prospect of the next uplift to the range’s resistance is quite possible. The checkpoint can obviously be the line of the short-termed trend (the blue line) as its breakage will mark the high probability of the growth to the strong resistance at 1.6250/30. The price attendance within the descendant channel (the blue punctured lines) leaves the “bears” priorities predominant; that’s why the preferences are maintained on the side of further decrease; the support breakage at 1.6100/50 will signal the price downfall to other obstacles on the way downward, 1.6030/20, 1.5940, 1.5900. The change of the trend will become high probable in case of the increase higher than the resistance at 1.6400.

Analysis prepared by:

Arkady Nagiev
Forex4you analyst