On the daily chart, the pair is falling along the lower MA of Bollinger Bands, just above the lower border of a descending channel. The price remains below its moving averages that are directed down. The RSI is in the oversold zone and about to test important support level it could not overcome since June. The Composite is testing its end of December support.
On the 4-hour chart, the pair is trading in the lower Bollinger band. The price remains below its moving averages, directed down. The RSI is in the oversold zone falling along its trendline. The Composite failed to retest its beginning of the week resistance and turned down.
Support levels: 1.4600 (psychologically important level), 1.4565 (April lows), 1.4344 (2010 lows).
Resistance levels: 1.4695 (local highs), 1.4950 (end of December highs), 1.5071 (EMA65).
Short positions can be opened from the level of 1.4555 with the target at 1.4365 and stop-loss at 1.4605. Validity – 2-3 days.
Long positions can be opened above the level of 1.4700 with the target at 1.4795 and stop-loss at 1.4674. Validity – 2-3 days.