On the daily chart, the pair is trading just on the middle MA of Bollinger Bands, while bands narrowed down. The price remains below the EMA130 and EMA65, both directed down. The RSI found a support in the Bullish zone over the 40-mark and turned up. The Composite is also rising. MA’s for both indicators suggest a strength of the market.
On the 4-hour chart, the pair is trading in the lower Bollinger band. The price remains below the EMA130, EMA65 and EMA14, all directed slightly down. The RSI failed its most recent support and is about to test its longer MA. The Composite is testing its longer MA after it formed a divergence with the price.
Support levels: 14.13 (local lows), 14.08 (8 December low), 13.90 (end of November lows).
Resistance levels: 14.33 (local highs), 14.55 (active trade), 14.69 (61.8% Fibonacci retracement).
Long positions can be opened from the level of 14.35 with the target at 14.54 and stop-loss at 14.29. Validity – 1-2 days.
Short positions can be opened from the level of 13.80 with the target at 13.55 and stop-loss at 13.91.