After a sharp drop, price has approached to the strong support level at 1.17 and couldn’t break it to the downside.
Currently, price has started to rise but we still don’t know if it is a correction or a bullish reverse.
On the other hand, there is a resistance level at 1.1750 and the price’s reaction to this key level is important.
We have two different scenarios:
1. If price reach 1.1750 and got rejected by that, we can expect the continuation of downtrend and a drop to 1.1665 which is the Monthly Low.
2. If price breaks 1.1750 and closes a bullish confirmation candle above it, we expect more rise at least to the last major top (1.18) which is also another resistance barrier and in the case of an upside breakout on it, the next target would be around the Weekly High (1.1850)
Comment
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Bearish scenario happened. As I expected, 1.1750 was a key level and price got rejected by it twice.