Assumptions, mentioned in the previous comment came true – level 0.8900/30 breakout and fixation above initiated further growth and the trading escaped from a downtrend channel (red lines). The price tested the first target – level 0.9040 and started correction. The trading is currently carried on around levels 0.8980/90. Indicators show growth, but R% descend suggests a possible correction in a range 0.9040-0.8980. At the same time SS and MACD indicators give support to an upward movement and signal of a scenario, mentioned in the previous comment. The scenario concerns level 0.9080, and then 0.9240/30 testing. Reversal downwards and fall below support 0.8900 will cancel the “bullish” expectations.
Analysis prepared by:
Arkady Nagiev
Forex4you analyst