On the daily chart, the pair broke out the middle MA of Bollinger Bands and growing towards the upper MA of the indicator. The price is trading above the EMA130, EMA65 and EMA13 that are directed up. The RSI is testing its most recent resistance but forming is small divergence with the price and the Composite, which is also approaching its resistance.
On the 4-hour chart, the price is trading on the upper MA of Bollinger Bands after it has closed above the line few candles before. The price remains above its moving averages, while the EMA130 and EMA65 start turning up indicating the direction of a short-term trend. The RSI is just underneath the overbought zone and formed a Bearish divergence with the price. The Composite failed its significant resistance that it could not overcome since the beginning of October. However, MA’s for both indicators suggest a strength of the market.
Support levels: 2.9120 (local lows), 2.9049 (October lows), 2.8995 (EMA130 on the 4-hour chart).
Resistance levels: 2.9294 (local highs), 2.9595 (October highs, upper MA of Bollinger Bands on the daily chart), 2.9701 (September lows).
Open long positions above the level of 2.9300 with the target at 2.9495 and stop-loss at 2.9230. Validity – 1-2 days.
Short positions can be opened below the level of 2.8995 with the target at 2.8825 and stop-loss at 2.9050. Validity – 1-2 days.