On the , the pair has failed to break out the 61.8% Fibonacci fan line and turned down. The price is falling along the lower MA of and is currently forming the second close below the line. The price remains below its moving averages that are directed down. The broke down important support line and falling towards its November supports. The Composite is reaching its critical levels suggesting a room for further decline is limited.
On the 4-hour chart, the pair is correcting up from the lower MA of . The price remains below its moving averages that are directed down. The turned up after it formed a with the price. The Composite is about to test its yesterday’s .
Support levels: 1.0710 ( local lows), 1.0673 (November lows), 1.0550 (December lows).
Resistance levels: 1.0801 (active trade), 1.0837 ( local highs), 1.0927 (beginning of the week highs).
Short positions can be opened below the level of 1.0710 with targets at 1.0673, 1.0565 and stop-loss at 1.0745. Validity – 2-3 days.
Long positions can be opened above the level of 1.0837 with the target at 1.0917 and stop-loss at 1.0795. Validity – 2-3 days.