Downside wave has approached key barrier at 1.4832, touching on the lower Bollinger band and driving oscillators around the oversold area. Yesterday it retraced slightly and currently is at 1.4968 with longs that took positions at the bottom already in profits while shorts become less profitable, who is going to win at the end?
In our view, there is no clear trend in the price pattern and extreme down oscillators recommend us to keep a contrarian attitude towards recent negative momentum, in addition area around 1.4830 historically represent a key support. Therefore we consider recovery towards resistance 1.5010 and extend into 1.5010/1.4832 range, which takes place now, the most likely scenario.
In our view, there is no clear trend in the price pattern and extreme down oscillators recommend us to keep a contrarian attitude towards recent negative momentum, in addition area around 1.4830 historically represent a key support. Therefore we consider recovery towards resistance 1.5010 and extend into 1.5010/1.4832 range, which takes place now, the most likely scenario.