On the daily chart, the pair is growing along the upper Bollinger band. The price stopped just underneath 38.2% Fibonacci retracement and its long-term descending trendline. The price, however, remains above its moving averages that start turning up. The RSI, same as the Composite, keeps testing its resistance level that it cannot overcome since the beginning of December.
On the 4-hour chart, the pair is trading just below the upper MA of Bollinger Bands. The price remains above its moving averages that are directed up. Both the RSI and the Composite start forming a Bearish divergence with the price as they failed to retest their last week resistance.
Support levels: 0.6805 (active trade), 0.6733 (50% retracement), 0.6686 (local lows).
Resistance levels: 0.6843 (38.2% retracement), 0.6897 (October highs), 0.6980 (23.6% retracement).
Short positions can be opened from current levels with the target at 0.6748 and stop-loss at 0.6890. Validity – 2-3 days.
Long positions can be opened above the level of 0.7000 with the target at 0.7139 and stop-loss at 0.6970. Validity – 2-3 days.