traded lower on Thursday, after it hit resistance at 1.2666, but the slide was stopped at 1.2633. Overall, the pair remains above the upside support line drawn from the low of Aug. 23, and thus, we would consider the short-term outlook to be positive.
A decisive break above 1.2666 would confirm a forthcoming higher high and may initially target the 1.2685 level, marked by an intraday swing high formed on August 16th. If that level is broken as well, then we could see advances towards the 1.2714 barrier, which is the peak of July 28. Another break, above 1.2714, could extend the trend towards the inside swing low of Aug. 12.
Shifting attention to our short-term oscillators, we see that the RSI, already above 50, has turned up again, while the MACD runs above both its zero and trigger lines. Both indicators detect upside speed and support the notion for a trend continuation.
In order to abandon the bullish case and start examining the case of a trend reversal, we would like to see a dip below 1.2590, an intraday swing low of September 1st. The rate would already be below the aforementioned upside line, and may initially pave the way towards the low of Aug. 31, at 1.2560. If the bears are not willing to stop there, then a break lower could see scope for extensions towards the 1.2528 zone, defined by the low of the day before.
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