On the daily chart, the pair bounced off the upper MA of Bollinger Bands that coincides with the EMA65 and 50% Fibonacci retracement. The price remains above the EMA130 that leveled out after a recent growth. The RSI failed its resistance at the Bearish level near 56 mark. The Composite is testing its last week resistance and is about to form a divergence with the price. MA’s for both indicators suggest a strength of the market.
On the 4-hour chart, the pair is falling from the upper MA of Bollinger Bands. The price remains above its moving averages that are all directed up. The RSI retested its resistance in the overbought zone, while the Composite is falling towards its MA’s. MA’s for both indicators suggest a strength of the market.
Support levels: 3.1373 (EMA130, 61.8% retracement), 3.1170 (local lows), 3.0828 (middle MA of Bollinger Bands).
Resistance levels: 3.1658 (50% retracement, EMA65), 3.1951 (38.2% retracement), 3.2319 (23.6% retracement).
Short positions can be opened below the level of 3.1350 with the target at 3.1180 and stop-loss at 3.1445. Validity – 1-2 days.
Long positions can be opened above the level of 3.1658 with the target at 3.1910 and stop-loss at 3.1560. Validity – 1-2 days.