The pair failed to consolidate below important support levels. Yesterday, bulls managed to recover and are now retesting the overcame levels of the daily cross, which are located at 1.2204 (Kijun) and 1.2241 (Tenkan) today. The next significant upper target is the level of 1.2349 (nearest maximum extreme). In the current situation, the main task is to consolidate below the level of 1.2170 in order to maintain bearish advantage and opportunities.
The upward correction that started the day before, after breaking through the resistance of the central pivot level, was developed. Currently, the pair approached the next key level in the smaller time frame – the weekly long-term trend (1.2230). A consolidation above which and reversal of moving averages will change the balance of power in the hourly time frame.
At the same time, the next upward targets within the day can be designated at 1.2257 (R2) and 1.2305 (R3), but the bulls' main interest will rest against the high (1.2349). In case the correction ends, the relevance will return to the support levels which can be noted at 1.2184 - 1.2159 - 1.2111 - 1.2086 (classic pivot levels) today.
The bulls are expecting for the completion of the downward correction. To implement their plans, they approached the maximum extreme (1.3703). What will be the result? Will it be the bulls' victory, a reliable consolidation above the high and an active continuation of the upward trend or the formation of a Chinkou divergence and another decline of the bears? Only time will tell. The nearest upside targets are 1.3703 (high) and 1.3904 (first target of the target for breaking the weekly cloud). The supports, in turn, are still located at 1.3577 - 1.3486 - 1.3416 - 1.3350 in the bigger time frames.
The bulls have the main advantage in the smaller time frames. If the high (1.3703) is updated, it will restore the upward trend on all timeframes. In this case, the next upward pivot points today are located at the borders of the classic pivot levels R1 (1.3718), R2 (1.3776) and R3 (1.3883). The key support levels are at 1.3611 (central pivot level) and 1.3575 (weekly long-term trend). A consolidation below will change the balance of power in the same time frame, returning the initial advantage to the bears. If this happens, we will consider the support of the classic pivot levels (1.3553 - 1.3446 - 1.3388) will be opened.
Ichimoku Kinko Hyo (9.26.52), Pivot Points (classical), Moving Average (120)
*La presente analisi del mercato ha un carattere esclusivamente informativo e non rappresenta una guida per l`effettuazione di una transazione.
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