Support level 08850/60 breakout opened the way to 0.8780/70, which had been tested by the “bears”. The price went back to resistance 0.8900/0.8860 and now resides at 0.8870/80. Indicators show a possible mood change on this instrument – R% is making attempts to fix in overbought zone; SS escaped from oversold zone and is now turned upwards. MACD divergence is about to enter positive zone. If the price fixes above 0.8900/30, it will be a good signal to further growth. In this case, another resistance test 0.9040/0.9080 with the following raise to 0.9240/30 is expected. Nevertheless, as long as the price remains in this downtrend channel, we have grounds to assume a new downtrend.
Analysis prepared by:
Arkady Nagiev
Forex4you analyst