The presumptions of the previous analysis were confirmed by the market again as the increase continued and the breakage through 1.3650 and further 1.3670/80 as well allowed the “bulls” to exercise new maximums at 1.3730/40. Thereupon, however, the price returned to 1.3630/40, and that exactly arouse some doubts concerning the power of the growing potential. At the very moment the effort to renew the raise is observed as the price resides at 1.3670/80. The indicators have relaxed a little their mood for the increase lasting. R% went down and get out beyond the over purchased zone, MACD dipped the histograms, but still stays over the balance line, and finally, SS steadily holds the ascendant course. It’s obviously possible in the current situation to predict that the “bulls” haven’t reject to accomplish the scenario as for the exercise of the trend line of the mid-term descendant channel (the red lines) in the sector of the prices at 1.3790-1.3800/20. And up to the moment the beginning of another attempt is observed. The levels of 1.3677 (which is already resisting, by the way), 1.3700 and further 1.3720-1.3730 attract special attention as therefore one more efficient rollback downward is also possible. The price decrease lower than 1.3640/30 will decline the increasing scenario. In the latter case the before mentioned presumptions of the exercise of supports at 1.3380 and further 1.3310/00 will be on the agenda in the near-term outlook.

Analysis prepared by:

Arkady Nagiev
Forex4you analyst