On the four-hour chart the pair is moving in the upward channel. The price has stopped at the upper limit of the channel at the level of 0.7140. Although on the daily chart the indicators OsMA and Stochastic recommend buy positions; the indicators on the four-hour chart show that sell positions are preferable.
Breakdown of the support levels of 0.7070 (ÅÌÀ200), 0.7045 (ÅÌÀ144) and 0.7010 (lower limit of the channel) will bring the pair back to the downtrend in the declining channel on the daily chart with the upper limit of 0.7095. Breakdown of the resistance level of 0.7095 (ÅÌÀ50 on the daily chart) can be false.
Breakdown of the level of 0.6950 will confirm the completion of the upward correction and will lead the pair to support level of 0.6910 (Fibonacci 0% to the last wave of decline in the pair since 2014) and to the key support levels of 0.6350 and 0.6000 (lows of 2008 – 2009).
Otherwise, the price will consolidate above resistance level of 0.7140, which will enable the pair to go up to resistance level of 0.7245 (ÅÌÀ144 on the daily chart).
Further dynamics of movement will be determined by the decisions of ARB and prices of oil and commodities. On Friday, NFPR will become known which will show the state of the US labour market. As we know, this index can have a strong impact on the market and change technical picture.
Support levels: 0.7070, 0.7045, 0.7030, 0.7010, 0.6950, 0.6910 and 0.6860.
Resistance levels: 0.7140 and 0.7245.
Trading tips
Sell Stop 0.7030. Stop-Loss 0.7080. Take-Profit 0.7010, 0.6950, 0.6910, 0.6860, 0.6810.
Buy Stop 0.7110. Stop-Loss 0.7040. Take-Profit 0.7140, 0.7200, 0.7245.