This article was first published on Orbex Forex Trading Blog.
This content is synced from the rightful owners. Copyright on text and images belong to the original source.
The bigger picture is the loss of 0.6705 base support and the plunge thereafter. The pair printed a low of 0.5510, losing almost 1,200 pips.
Currently, the pair is up on a bounce which is likely to continue this week.
The daily chart above highlights the break of support structures earlier. Now, it is on a corrective bounce. As with any correction, a retest to those levels is the likely scenario. The current momentum on the price action also indicates that we can have further run higher.
The 0.6300 handle comes in as an initial modest corrective target (marked with the blue line) on the run higher, as the level is congested with a bottom, a high, a close and an open on daily candles.
Once the price starts holding higher to it, we can look forward to better testing grounds to the 0.6410 region. A fuller correction can leap towards the 0.6660 zone test.
The 2-hour chart below provides a visual display of the current price action. Namely, we are within a bull channel (blue trendlines), bu...
To keep reading this article, please navigate to: Orbex Forex Trading Blog.