On the daily chart, the pair is trading below the middle MA of Bollinger Bands. The price remains underneath the EMA130, EMA65 and EMA14, all directed down. The RSI is turning up as it failed to retest its most recent support yet thus showing a Bullish behavior. The Composite, however, is moving down towards its longer MA and most recent support level. MA’s for both indicators suggest some strength of the market.
On the 4-hour chart, the pair is falling towards the lower MA of Bollinger Bands as it corrected inside the price range after yesterday’s sharp fall. The price remains below its moving averages that are directed down. The RSI turned down just above the 40 mark, while the Composite is turning down as well. MA’s for both indicators suggest a weakness of the market.
Support levels: 13.86 (local lows), 13.63 (December lows), 13.25 (2009 lows).
Resistance levels: 14.40 (local highs), 14.63 (December highs), 14.95 (EMA130).
Short positions can be opened from the level of 13.60 with the target at 13.28 and stop-loss at 13.72. Validity – 1-2 days.
Long positions can be opened from the level of 14.12 with the target at 14.35 and stop-loss at 14.05. Validity – 1-2 days.