On the daily chart, the pair seems broken out and consolidated above a contracting triangle pattern that was formed at the beginning of the year. The price bounced off the upper MA of Bollinger Bands, while the bands are widening and heading up. The EMA130, EMA65 and EMA13 turned up now and the price is trading above them. The RSI is about to test its former resistance line, while the Composite is approaching its longer MA. MA’s for both indicators suggest a strength of the market.
On the 4-hour chart, the pair is trading near the lower MA of Bollinger Bands. The EMA130 and EMA65 are heading up indicating the direction of a short-term trend. The RSI is testing its most recent support level, while continues falling along its trend line. The Composite failed its longer MA and now also falling.
Support levels: 0.9846 (lower MA of Bollinger Bands on the 4-hour chart), 0.9813 (61.8% Fibonacci retracement), 0.9777 (50% retracement).
Resistance levels: 0.9905 (local highs), 0.9938 (active trade), 1.000 (psychologically important level).
Open long positions from current prices with the target at 0.9935 and stop-loss at 0.9841. Validity – 1-3 days.
Short position can be opened below the level of 0.9777 with the target at 0.9696 and stop-loss at 0.9810.