The nature of the July 10 candle was a strong signal. The move from Wednesdays close has already moved 50% of the Daily ATR and has an initial target at R2 and 2.7311. However, there is strong around 2.7000 which has the confluence of R1, the 50-day moving average, and the 23.6 Fibonacci level. A break of R2 would then put the July high and 38.2 Fibonacci level at 2.7525 in sight with further resistance at the 200-day moving average and the 50.0 Fibonacci level at 2.8000.
The low last week was first established following the steady declines from the April congestion zone over 2.900. The current key around 2.6200 was also in play during January following the 2019 low on January 3 at 2.5740. The Oscillators ( and ) remain below the key Zero line and at 46 although rising is in the neutral zone.
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