For the first time since September 2014, the price managed to reach the $93 mark and now the price is retracing as expected, we could see this correction testing the support level at $85.77 in the short term.
The Bollinger bands are shrinking which will bring lower volatility to the asset in the upcoming sessions, the pair traded above the upper band, which suggested it was relatively high, pushing investors to close out their long positions and cash out. There could be a new trading opportunity in the upcoming days once the support is tested.
The relative strength index is at 66% just coming back from an overbought status at 78%, another reason why investors pulled out and are now waiting for the right moment to get back in the trade. Our parabolic SAR indicator suggests that the price will continue climbing, but this is a lagging indicator, we don't see any other signal of an uptrend at this moment.
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
