On the daily chart, the pair bounced off the upper MA of Bollinger Bands and falling towards the lower MA of the indicator that remains near a long-term trend line and EMA130. All moving averages for the price turned horizontally. The RSI found a resistance in the Bearish zone and is currently falling towards its longer MA. The Composite is breaking down its MA’s moving towards its most recent support.
On the 4-hour chart, the pair is falling along the lower MA of Bollinger Bands. The price remains just below the EMA130 and EMA65, both turned horizontally. The RSI is declining towards its support level from mid-November. The Composite is about to test its most recent support. MA’s for both indicators suggest current weakness of the market.
Support levels: 2.8636 (50% Fibonacci retracement), 2.8136 (38.2% retracement), 2.8440 (end of November lows).
Resistance levels: 2.9139 (61.8% retracement), 2.9350 (local highs), 2.9429 (October highs).
Open short positions from the level of 2.8730 with the target at 2.8450 and stop-loss at 2.8869. Validity – 1-2 days.
Long positions can be opened above the level of 2.8958 with the target at 2.9115 and stop-loss at 2.8870. Validity – 1-2 days.