On the daily chart, the pair is trading above the lower MA of Bollinger Bands. The price remains below its moving averages that are directed down. The RSI turned down again just above the oversold zone as it failed its longer MA. The Composite, however, is moving up and is about to test its MA’s.
On the 4-hour chart, the pair is falling towards the middle MA of Bollinger Bands. The price remains below the EMA130 and EMA65 that are directed down. The RSI turned down in the Bearish zone below the 60 mark. The Composite turned down as well at its extremely high levels.
Support levels: 4.0854 (local lows), 4.0668 (50% Fibonacci retracement), 3.9922 (April 2015 lows).
Resistance levels: 4.1613 (local highs), 4.2123 (61.8% retracement), 4.2654 (February highs).
Short positions can be opened from the level of 4.0636 with the target at 4.0012 and stop-loss at 4.0855. Validity – 2-3 days.
Long positons can be opened from the level of 4.1673 with the target at 4.2053 and stop-loss at 4.1575. Validity – 2-3 days.