On the daily chart, the pair corrected upward to the middle MA of Bollinger Bands. The price remains below the EMA130 and EMA65 that are directed down. The RSI is testing its end of December resistance. The Composite is testing its strong resistance it cannot overcome since October. MA’s for both indicators suggest a strength of the market.
On the 4-hour chart, the pair is trading in the upper Bollinger band. The price remains below the EMA130 but above the EMA65, both turned horizontally. The RSI failed its most recent resistance and falling. The Composite shows similar dynamics. Both indicators have formed a Bearish divergence with the price.
Support levels: 1.4284 (short-term trendline), 1.4228 (local lows), 1.4049 (2009 lows).
Resistance levels: 1.4412 (local highs), 1.4446 (EMA130 on the 4-hour chart), 1.4612 (61.8% Fibonacci retracement).
Long positions can be opened after the price rebound from the level of 1.4284 with targets at 1.4370, 1.4410 and stop-loss at 1.4230. Validity – 1-2 days.
Short positions can be opened below the level of 1.4228 with the target at 1.4089 and stop-loss at 1.4290. Validity – 1-2 days.