On the daily chart, the pair is growing along the upper MA of Bollinger Bands. The price remains above the EMA130, EMA65 and EMA14, all directed up. The RSI is about to test its resistance it cannot overcome since the beginning of last week. The Composite is on the level with its longer MA for the third day. MA’s for both indicators suggest some strength of the market.
On the 4-hour chart, the pair is trading in the upper Bollinger band. The price remains above its moving averages that are directed up. The RSI keeps forming Bearish divergences with the price warning that a downward correction is possible. The Composite is growing towards its resistance it cannot overcome since last week.
Support levels: 3.0196 (local lows), 3.0045 (last week lows), 2.9891 (EMA130 on the 4-hour chart).
Resistance levels: 3.0608 (local highs), 3.0684 (September 2015 highs), 3.0904 (upper MA of Bollinger Bands on the daily chart).
Short positions can be opened after the price rebound from the level of 3.0684 with the target at 3.0260 and stop-loss at 3.0740. Validity – 1-2 days.
Long positions can be opened from the level of 3.0745 with the target at 3.0899 and stop-loss at 3.0680. Validity – 1-2 days.