The presuppositions concerning the further attendance of the price within the lateral range edged with 1.450/60-1.4300/1.4280 are justified. After the support exercise for the corridor the price has started its growth and finds itself at 1.4320/30. The indicators demonstrates more distinct preferences to the “bulls” mood now – R% has got out of the oversold zone, MACD continues to create the divergence increasing the histograms, and SS still stays within the oversold zone suggesting to accept the observed increase as the retracement within the descendant trend. Obviously, any uplift should be accepted as the retracement to price falling down until the breakage through the trend line of the descendant channel (the blue punctured lines). Even in case of the breakage through this line and trading uplift till the resistances at 1.4410/40 the power will stay on the “bears”. More essential apprehensions concerning the trend alternation can appear at the trading raise higher than the resistance at 1.4510/20.
Presumably, it’d better to stay out of the market still yet; at the support breakage at 1.4280/60 it’ll be possible to consider the short positions till the support at 1.4200.
Analysis prepared by:
Arkady Nagiev
Forex4you analyst