Last week I wrote about a possible Bullish reversal at 0.9825, a long standing S/R zone going back to 2008. The pair did indeed turn Bullish at this level, but is it an actual trend reversal or simply a retracement before heading further south? Price action was clearly bullish on the Daily chart in the first day of trading for the week. Price closed above the Weekly Pivot at 0.98884 as well as the 5EMA. If price remains Bullish, we could see a possible pull back to the Weekly R1 at 0.9982 or the Monthly S3 which is close to the 38.2% retracement level at 1.0054. If we trade above this level, the real test for a reversal will be clearing the 61.8% level at 1.02144, also the Weekly R3. Should price fall instead, look for support once again at the previously mentioned zone at 0.98250 and 0.9795. If we break the 6 month low, look for additional support at 0.9743 and another strong time tested S/R zone at 0.9656 which also coincides with the Weekly S2, and could be a very strong reversal point if the current level does not hold.
Happy Pipping!