The price is close to a key support level at $1.1387.
I wrote on Thursday last week that it looked like the odds were clearly with the bulls on the long side, due to weakness in the US odllar, but I thought that we were unlikely to see much more of a price rise as I thought that the resistance level at $1.1456 was likely to hold, at least for the short term.more or less, for a couple of days.
The technical picture has changed somewhat. We have seen renewed strength in the US dollar over the past 3 days , and this is in line with its long-term bullish trend although recent weeks have seen a pronounced dip in that trend, to the point that the trend begins to be called into question. This dollar strength has pushed the price down.
We now see the price consolidating right on the support level of $1.1387 after having fallen weakly and printed new resistance levels which are quite close by. This suggests that as we have no major data releases today to disturb this situation, we will be likely to see the price consolidate today between $1.1387 and $1.1435 or maybe $1.1451., most notably a potential long scalp off $1.1387 which could be the first such opportunity today.
I am a little worried there may be more volatility than I expect later after New York opens due to the US returning from yesterday’s public holiday, so scalpers should be cautious around the New York open.Top Forex Brokers
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