On the daily chart, the pair is trading in the lower Bollinger band. The price is consolidating just above the neckline of the “head and shoulders” pattern that has been forming since December 2014. The price remains below its moving averages that are directed down. The RSI broke out from the oversold zone but turned down again. The Composite failed to retest its December resistance and turned down.
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 failed its resistance in the Bearish zone at 50 mark and fell below the longer MA. The Composite is testing its MA’s.
Support levels: 116.57 (neckline), 115.96 (local lows), 114.62 (November 2014 lows).
Resistance levels: 117.48 (local highs), 118.38 (local highs), 120.15 (December 2015 lows).
Short positions can be opened from the level of 115.80 with the target at 114.65 and stop-loss at 116.15. Validity – 2-3 days.
Long positions can be opened above the level of 118.38 with the target at 119.95 and stop-loss at 117.80. Validity – 2-3 days.