Bearish correction is just around the corner
Summary
The conclusion drawn from the data analysis present in the chart reveals an upward sentiment in the market. However, there are data indicating the possibility of a temporary downward correction. This correction could result from the strong upward movement that has prevailed in the exchange rate in recent days.
Trend Determination
The primary trend prevailing in the exchange rate price chart is upward. The secondary short-term trend currently present in the exchange rate price chart is also upward.
Within the main upward trend channel that has formed, exchange rate prices are moving upward within the middle zone. In the secondary downward trend channel that has formed, exchange rate prices are moving upward within the upper zone.
The price delineation within the main and secondary trends produces two scenarios. Initially, the strong upward movement observed recently has created overbought conditions. This results in the possibility of a temporary downward correction. An important resistance point according to the chart data is 1.3080. The formation of the candlestick that will form today is deemed significant as the formation of a hanging man pattern would support this scenario.
On the other hand, it is not ruled out that the price could move even higher, as the breach of the middle zone of the main channel opens the way for further price increases.
Fibonacci Support – Resistance Levels
Fibonacci Retracement
The exchange rate movement has broken through the upper boundary of the Fibonacci Retracement and is moving outside its limits. Therefore, the 1.2809 level constitutes an important support level for the formation of the current upward trend. Additional support levels are at 1.2700, which is also a psychological level, and lower at 1.2633.
Fibonacci Expansion
The analysis of the Fibonacci Expansion levels shows that the first resistance level has been breached by the exchange rate. Another resistance level exists at 1.3081 and higher at 1.3366.
Technical Indicators Analysis
Moving Averages
Currently, the exchange rate prices are above the moving averages. The distance of the current price from the moving averages is approximately 270 pips. This distance is considered statistically significant and could indicate overbought levels of the currency pair.
MACD
The MACD is moving positively in an upward trajectory with moderate momentum. Visualizing the indicator’s results shows no divergences between the MACD’s path and the price path.
Stance: BUY | Outlook: Short | Risk for placing orders: Significant
The conclusion drawn from the data analysis present in the chart reveals an upward sentiment in the market. However, there are data indicating the possibility of a temporary downward correction. This correction could result from the strong upward movement that has prevailed in the exchange rate in recent days.
Trend Determination
The primary trend prevailing in the exchange rate price chart is upward. The secondary short-term trend currently present in the exchange rate price chart is also upward.
Within the main upward trend channel that has formed, exchange rate prices are moving upward within the middle zone. In the secondary downward trend channel that has formed, exchange rate prices are moving upward within the upper zone.
The price delineation within the main and secondary trends produces two scenarios. Initially, the strong upward movement observed recently has created overbought conditions. This results in the possibility of a temporary downward correction. An important resistance point according to the chart data is 1.3080. The formation of the candlestick that will form today is deemed significant as the formation of a hanging man pattern would support this scenario.
On the other hand, it is not ruled out that the price could move even higher, as the breach of the middle zone of the main channel opens the way for further price increases.
Fibonacci Support – Resistance Levels
Fibonacci Retracement
The exchange rate movement has broken through the upper boundary of the Fibonacci Retracement and is moving outside its limits. Therefore, the 1.2809 level constitutes an important support level for the formation of the current upward trend. Additional support levels are at 1.2700, which is also a psychological level, and lower at 1.2633.
Fibonacci Expansion
The analysis of the Fibonacci Expansion levels shows that the first resistance level has been breached by the exchange rate. Another resistance level exists at 1.3081 and higher at 1.3366.
Technical Indicators Analysis
Moving Averages
Currently, the exchange rate prices are above the moving averages. The distance of the current price from the moving averages is approximately 270 pips. This distance is considered statistically significant and could indicate overbought levels of the currency pair.
MACD
The MACD is moving positively in an upward trajectory with moderate momentum. Visualizing the indicator’s results shows no divergences between the MACD’s path and the price path.
Stance: BUY | Outlook: Short | Risk for placing orders: Significant
Disclaimer
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