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.
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.