traded lower today, after it hit resistance at the crossroads of the 0.6824 level and the downtrend line drawn from the high of Mar. 18. With that in mind, we will treat the recovery from Aug. 2 until today as a corrective move and keep a negative broader stance on this exchange rate.
A clear and decisive dip below the 0.6715 level, marked by the low of July 20, could confirm the prevailing downtrend’s resumption and may initially pave the way towards the lows of July 30 and Aug. 2, at around 0.6640. If the bears are not willing to stop there, then we may see them pushing the battle towards the low of Aug. 20, at 0.6515. Another break, below that low, will confirm a forthcoming lower low on the daily chart, and could see scope for extensions towards the low of Oct. 29, at 0.6400.
Shifting attention to our oscillators, we see that the RSI turned down after hitting its 70 line, while the MACD, although above both its zero and trigger lines, shows signs of topping. Both indicators suggest that the upside momentum is decelerating, and add some credence to our view that the latest recovery was just a corrective phase of the prevailing downtrend.
On the upside, we would like to see a break above 0.6865 before we start examining a bullish trend reversal. This could confirm the break above the aforementioned downtrend line and may initially pave the way towards the 0.6973 barrier, which provided resistance between May 25 and July 6. If the bulls do not stop there, then we could see advances towards the high of May 18, at 0.7030, where another break could open the path towards the high of May 10, at 0.7100.
Disclaimer: The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval. 73.90% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure – https://www.jfdbrokers.com/en/legal/risk-disclosure .