Previous short-term technical outlook
Since posting the previous short-term technical outlook we did see price break out of the wedge pattern to the downside, however it was quickly bought up at the 117 figure. We are now seeing decent buying pressure stepping in.
The first key area of resistance to keep the upside in check is at 117.63. A lift above the level will signal continued strength, but bear in mind the very strong resistance at 118.66. We cannot bet on another leg higher in this uptrend until the latter figure is broken.
Offering some confluence to the 117.63 resistance is the short-term resistance trend line that is still intact. It has been acting as resistance for eight consecutive trading days now and we can expect to see it continue to keep the buyers in check. This sharp move to the upside out of the open may just be hitting pending shorts.
It will take a break below the 117 figure to signal a deeper pullback on this pair and to put sights down to the next support area at 116.55.
I hope this gives some clarity on the directional bias on this pair.
Enjoy!
Since posting the previous short-term technical outlook we did see price break out of the wedge pattern to the downside, however it was quickly bought up at the 117 figure. We are now seeing decent buying pressure stepping in.
The first key area of resistance to keep the upside in check is at 117.63. A lift above the level will signal continued strength, but bear in mind the very strong resistance at 118.66. We cannot bet on another leg higher in this uptrend until the latter figure is broken.
Offering some confluence to the 117.63 resistance is the short-term resistance trend line that is still intact. It has been acting as resistance for eight consecutive trading days now and we can expect to see it continue to keep the buyers in check. This sharp move to the upside out of the open may just be hitting pending shorts.
It will take a break below the 117 figure to signal a deeper pullback on this pair and to put sights down to the next support area at 116.55.
I hope this gives some clarity on the directional bias on this pair.
Enjoy!
