On the daily chart, the pair is falling along the lower Bollinger band. The price remains below the EMA130, EMA65 and EMA13 that are directed down. The RSI is testing its longer MA just above the border of the oversold zone. The Composite is about to test its last week’s resistance. Both indicators are forming a Bearish divergence with the price suggesting a fall in the pair.
On the 4-hour chart, the pair keeps growing along the upper MA of Bollinger Bands. The price remains just on the level with the EMA65 but below the EMA130, both directed slightly downward. The RSI failed to retest its most recent resistance and is about to test yesterday’s support. The Composite is also approaching its yesterday’s support level. MA’s for both indicators suggest a short-term strength of the market.
Support levels: 3.0559 (active trade), 3.0260 (local lows), 3.0040 (23 November lows).
Resistance levels: 3.0684 (61.8% retracement), 3.0833 (local highs), 3.0881 (50% Fibonacci retracement), 3.1125 (EMA130 on the 4-hour chart).
Open short positions below the level of 3.0684 with the target at 3.0330 and stop-loss at 3.0830. Validity – 2-3 days.