The price has landed at a major resistance area
, where different short medium and long term resistance levels meet around 1.3850 area. The resistance of the recent bullish channel
, alongside the 61.8 retracement of the long term bearish
wave that started in may 2011 at 1.4935 to 2012 low at 1.2041. The 161.8 extension level of the latest bullish
wave is at 1.3824 as well, meanwhile RSI
is strongly overbought.
Accordingly, a downside reversal or correction seems likely, however, look for intraday bearish
signals to benefit from any downside pressure. On the other hand, if price successfully breaks and holds above this area, that would confirm the continuation of the rally.