Another trading month has passed over, and now it’s possible to make conclusions concerning the future prospects for the next month at least. The previous mid-term forecast became true, moreover, the key support level has been broken through, and so-called “point of no return” has been successfully passed by. Generalizing from the fundamental events the currency rates’ dynamics should be considered by means of classic TA instruments. First of all, the virgin level of 208 Fibonacci strikes an eye in case if the first wave of decrease is designated as reference point. Furthermore, it’s suggested to pay attention to RSI, which shaped the primary divergence between the first and second waves of decrease, but it successfully bounced out of the 50th support level and drawn line that in its turn signals the possibility of recurring exercise for zone 25 and shaping “double divergence”, which might be quite enough for the beginning of the retracing bounce. This very bounce will be of the retracing nature until it’s observed till the powerful support at 1.3730 (a red one) shaped by the horizontal line and the top edge of the blue-colored channel. Therefrom it’s possible to predict another decreasing cycle with the target at the bottom edge of the long-term channel this time. If to apprise the picture visibly, this bottom edge will be look very attractive.

   Resulting everything before mentioned it should be stated the following: the monthly trend for March is ambiguous with the possible retracing bounce within the appointed levels. The predominant trend is still “bearish” until the lower edge of the long-term channel (the area of 1.2800/900).

Analysis prepared by:

Maxim Dmitrievsky
Forex4you analyst