On the daily chart, the pair broke down the 61.8% Fibonacci fan line and is currently trading below the lower MA of Bollinger Bands. The price remains below its moving averages that turned down. The RSI is testing its strong support level on the border of the oversold zone. The Composite is falling towards its end of January support.
On the 4-hour chart, the pair is trading just above the lower MA of Bollinger Bands. The price remains below its moving averages that are directed down. The RSI is about to leave the oversold zone. The Composite failed its strong support and trying to grow.
Support levels: 4.1419 (local lows), 4.1347 (June 2015 lows), 4.0796 (50% Fibonacci retracement).
Resistance levels: 4.1662 (local highs), 4.2105 (February lows), 4.2305 (61.8% retracement).
Short positions can be opened from the level of 4.1340 with the target at 4.0826 and stop-loss at 4.1436. Validity – 2-3 days.
Long positions can be opened from the level of 4.2145 with the target at 4.2305 and stop-loss at 4.2095. Validity – 2-3 days.