After hitting the technical support at the level of 1.1289 the price made a V-shape reversal (with a help of the ECB interest rate decision) and six green candles were made towards the technical resistance at the level of 1.1414. The market has hit broke through the resistance and went even higher, towards the 50% Fibo at 1.1429 and this level was cleared as well. The next target for bulls is the 61% Fibonacci retracement at the level of 1.1462, just above the local technical resistance at the level of 1.1449. The market conditions are now overbought, but the momentum is strong and positive and no price reversal pattern was spotted yet.
Please notice, this move up is being considered as a local correction up in an ongoing downtrend, and not as a separate trend up.
Weekly Pivot Points:
WR2 – 1.1506
WR1 – 1.1469
Weekly Pivot – 1.1377
WS1 – 1.1339
WS2 – 1.1268
All buy orders from the lows of the level 1.1300 should be now set to trailing stop as the target is seen at the level of 1.1462. A strong price reaction is expected at the level, so it will be better to close the buy orders there.
The material has been provided by InstaForex Company – www.instaforex.com