IKOFX Daily Market Analysis

[team.ikofx]

Can Aussie Recover Above 0.8730-40?

There was no relief for the Australian dollar this week as well, as it started on the negative note due to the tensions in Hong Kong. The AUDUSD pair traded below the 0.8700 support area and currently trying to recover some ground. There is a critical resistance around the 0.8730-40 area, which might act as a catalyst for the pair in the short term. The Australia’s private sector credit data was published during the Asian session, which came in line with the expectations and registered a gain of 0.4%. The Aussie dollar buyers are trying hard to take the currency higher against the US dollar after the release.

There is a bearish trend line on the hourly chart of the AUDUSD pair, which is acting as a hurdle for the Aussie buyers. Currently, the trend line resistance is around the 0.8730 level, which is 3-5 pips below the 23.6% fib retracement level of the last drop from the 0.8897 high to 0.8681 low. So, if the pair breaks higher and settles above the highlighted resistance zone, then there is a solid chance of a recovery moving ahead. The next resistance can be seen around the 100 moving average, which also coincides with the 50% fib retracement level. The hourly RSI is testing the 50 level and if it is cleared, then a break higher would be on the cards.

Alternatively, if the pair fails to settle above the 0.8730-40 resistance area, then a retest of the last low is possible in the near term. In fact, the possibility of a new low would increase in that situation.

Overall, buying with a break above the 0.8740 can be considered if the AUDUSD pair manages to gain momentum.

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Posted By IKOFX Technical Team: Online Forex Broker

 

[team.ikofx]

Can Euro Recover Against The British Pound

The Euro traded lower against a few major currencies yesterday, including the US dollar and the British pound. The Euro zone consumer price index came as a disappointment, and is expected to fall in September 2014. This ignited a bearish move in the Euro, as the pairs like EURUSD and EURGBP traded lower. The EURGBP pair fell to a new low of 0.7762, and currently retracing higher. However, there are several hurdles for the Euro buyers around the 0.7800-20 levels. So, we need to see how the pair reacts around the mentioned resistance area and whether it can manage to break it or not in the short term.

There is an important bearish trend line on the hourly chart of the EURGBP pair, and there are several resistances as highlighted in the chart around the 0.7800-0.7820 levels. The mentioned area can be considered as a pivot zone for the pair in the short term. If at all the pair manages to break the 0.7820 level and settle above the same, then it would open the doors for a larger correction in the coming sessions. Currently, the pair is struggling to pierce the 23.6% Fibonacci retracement level of the last drop from the 0.7890 high to 0.7762 low. So, if the pair breaks it, then it might encourage the Euro buyers in the short term.

On the other hand, there is also a possibility that the Euro buyers fail to take it higher. In that case, the chance of a move lower back towards the recent low of 0.7766 would be on the cards.

Overall, staying on the sidelines is a good option unless the pair settles above the 0.7820 level.

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Posted By IKOFX Technical Team: Online Forex Broker

 

[team.ikofx]

USDJPY Looks Poised For More Downside

The US dollar has recently shown signs of exhaustion against the Japanese yen, and it looks like it might continue to trade lower in the short term. There is a momentum shift noted for the USDJPY pair. As of writing, the pair is testing an important support area. If it manages to break the same, then it would open the doors for downside acceleration in the near term. Yesterday, the US ISM manufacturing PMI data was released, which missed the expectation. This triggered a downside move in the pair, and it was seen under pressure after the release. There are several other events in the coming sessions, which might affect the pair moving ahead.

There is a critical expanding triangle formed on the hourly chart of the USDJPY pair, which might act as a catalyst in the near term. Currently, it is trading around the 61.8% Fibonacci retracement level of the last move from the 108.25 low to 110.07 high. The most important thing to note is that the pair has closed below the 100 and 200 simple moving averages, which is a bearish sign if we consider them as a pivot. A break and close below the highlighted triangle might act as a trigger for the US dollar sellers to take the pair lower towards the last swing low. The only bullish sign as of now is the fact that the hourly RSI is around the extreme levels, which might produce a bounce in the pair.

On the other hand, if it bounces from the triangle support area, then the 100 moving average might be tested.

Overall, one might consider selling with a break, but with caution and wait for it to close below the support area.

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[team.ikofx]

Euro Searching For Reasons To Trade Higher

The Euro silently traded back above the 1.2620 resistance area against the US dollar, and it even tested the 1.2690-1.2700 area yesterday. There was a major risk event yesterday i.e. the ECB interest rate decision and press conference. There was no major reaction from the EURUSD pair, and it was broadly seen trading higher. However, the pair stalled right around an important resistance area, and currently moving lower. There are a couple of important releases lined up during the London and New York session, including the US NFP. So, one might witness some major swing moves in the EURUSD pair.

There is a critical ascending channel formed on the hourly chart of the EURUSD pair, which was the main reason for yesterday’s failure to break higher. Moreover, the same trend line coincided with the 38.2% fib retracement level of the last leg from the 1.2901 high to 1.2571 low. So, this failure can be considered as crucial. However, there is an important thing which we need to keep an eye on is that the pair has settled above the 100 hourly moving average, which is a bullish sign. It is currently aligning with the channel support trend line. So, there are several support areas on the way down for the pair. If it moves a bit lower from the current levels, then it might find buyers around the 1.2640-50 area.

Alternatively, if the pair fails to hold the support area, then a break and close below the channel could take it towards the last low of 1.2570.

Overall, one might consider buying right around the 100 hourly moving average with a stop below the channel support area.

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[team.ikofx]

GBPUSD – 1.6060 Is A Sell Zone Moving Ahead

The British pound suffered heavy losses against the US dollar during this past week especially on Friday after the US nonfarm payroll release. The GBPUSD blasted lower and cleared all major support levels to trade towards the 1.5950 area. The pair is trying to recover some ground as all major technical indicators pointing oversold readings. However, the US dollar dominance might continue, as the recent economic data raise the prospects of a rate hike sooner or later. There is no major economic release in the UK today, which means the London session might be quiet unless something comes up.

There was a descending trend line on the hourly chart of the GBPUSD pair, which was holding the downside in the pair. The pair broke the mentioned trend line and blasted lower. This broken trend line might act as a resistance in the near term, which now coincides with the 38.2% Fibonacci retracement level of the last fall from the 1.6257 high to 1.5952 low. So, if the pair retraces from the current levels, then it might find sellers around the 1.6040-60 area. It is important to note that the mentioned area acted as a support earlier and might act as a resistance in the short term. I think we should not chase the pair and wait for retracement to find a better selling opportunity.



There is also a chance that the GBPUSD pair might not correct higher. In that situation, a break below the last low of 1.5950 could take the pair towards the 1.5910 level.

Overall, one might consider selling around the mentioned resistance area as long as the pair is below the 1.6060 level.

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[team.ikofx]

Aussie Awaits RBA Rate Decision For Action

The Australian dollar traded higher Intraday against the US dollar and jumped close to the 0.8800 level. The US dollar was seen trading lower against almost all major currencies. The Australian dollar might gain or lose ground in about 2 hours or so. There is an important risk event lined up during the late Asian session. The RBA interest rate decision is scheduled, which might ignite volatility in the AUDUSD pair. It is very important to monitor what the RBA has to say about the recent releases in the Australia. If they keep their Dovish tone, then the Aussie buyers might come under pressure in the near term.

There is a bearish trend line on the hourly chart of the AUDUSD pair, which acted as a hurdle for the pair recently. So, it looks like the pair is setting up for a bear leg ahead of the RBA. There is even a chance of a spike around the trend line before moving lower again. However, we cannot exclude a break higher as well. A break and close above the mentioned trend would be very bullish for the pair in the near term. On the other hand, a failure to break above the trend line resistance area could take the pair back towards the 0.8700 support area, followed by the last low of 0.8641.

Alternatively, if the AUDUSD pair manages to break above the highlighted trend line, then it might challenge the 0.8850 level in the coming sessions. The next level of interest would be around the 0.8920 level.

Overall, one might consider selling around the mentioned resistance area as long as the pair is below the bearish trend line.

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Posted By IKOFX Technical Team: Online Forex Broker

 

[team.ikofx]

Euro Has More Room For Upside Against Pound

The Euro was seen trading higher not only against the US dollar but also against the British pound. The Euro has shown a lot of resiliency during the past couple of sessions, which has increased the chances of more gains in the near term. There is a critical release later during the London session i.e. the UK Halifax house price index data will be published. If the outcome fails to impress the British pound buyers, then it is likely to trade lower against a few major currencies, including the Euro in the short term. The market sentiment looks like set for more upside in the EURGBP in the short term.

There is a critical trend line formed on the hourly chart of the EURGBP pair, which acted as a hurdle for the Euro buyers time and again. Currently, the EURGBP pair is trading around the last swing high of 0.7870, which is acting as a hurdle. If the pair manages to clear it, then there is a chance of a run towards the 1.236 extension of the last leg from the 0.7872 high to 0.7835 low. The mentioned fib level also coincides with the highlighted bearish trend line as well. So, the Euro buyers are likely to struggle around the 0.7880-90 area, which might open the doors for a correction moving ahead.

If the EURGBP pair fails to trade higher above the mentioned resistance area, then it might move lower towards the 0.7850 support area. Any further losses could take it towards the 0.7830 level.

Overall, one might consider selling around the 0.7890 level as long as the pair is below the highlighted trend line.

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[team.ikofx]

US Dollar Eyeing More Losses Against Yen

The US dollar was hammered recently after the FOMC meeting minutes in which the fed mentioned that the recent dollar strength could hurt the economy. This came as a surprise to the US dollar buyers, as it was seen trading lower against almost all major currencies. It somehow managed to hold the ground against the Japanese yen, but remains at risk of a break lower. Currently, the USDJPY pair is trading around an important support area, and if it manages to clear it, then the pair might suffer more losses in the short term.

There is a short-term bullish trend line formed on the hourly chart of the USDJPY pair, which is acting as a support currently. The pair recently failed to break the 100 hourly moving average and traded lower. The mentioned trend line is protecting losses in the pair, but there is a high probability that the pair might break it and trade lower. Currently, it is also finding support around the 76.4% fib retracement level of the last move from the 107.74 low to 108.73 high. The hourly RSI is well below the 50 mark, which is also a bearish sign. It is just that the US dollar sellers need to break the trend line and support area in order to gain momentum in the near term.

On the other hand, if the pair manages to find bids and trades higher, then the 108.30 level can be seen as an immediate resistance followed by the 108.50 level.

Overall, one might consider selling with a break of the trend line as long as it stays below the 108.35 level.

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[team.ikofx]

Euro Breaks Down Again; Eyes More Losses

The Euro after trading higher during the London session yesterday was again seen struggling during the NY session. The ECB President speech ignited a selling pressure on the Euro, as the EURUSD pair moved lower. The US initial jobless claims released during the NY session yesterday also came better than the market expected. Overall, the US dollar was again getting bids. The EURUSD pair broke an important support area which might call for more losses in the coming sessions. We need to see how the Euro buyers react as the pair has many support areas on the way down.

There was an important bullish trend line on the 1 hour chart of the EURUSD pair, which was breached recently. The pair managed to find buyers around the previous swing support area, and currently bouncing back. However, it was seen struggling around the broken bullish trend line, which is acting as a resistance for the pair. There is a chance that the pair might fail to break higher again, and trade lower towards the 100 hourly moving average. The most important thing to note here is that both the 100 and 200 hourly moving averages are sitting right around the 50% fib retracement level of the last leg from the 1.2499 low to 1.2790 high. So, the Euro buyers might protect the downside in the pair moving ahead.

If the pair manages to trade higher and closes back above the 1.2700-20 level, then there is a possibility that it might head back towards the recent high of 1.2790.

Overall, one might consider buying dips around the 100 moving average as long as the pair stays above 1.2620 level.

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[team.ikofx]

Short-term Top Looming in GBPUSD

The British pound after trading as low as 1.6007 against the US dollar during this past week managed to find buyers. The GBPUSD pair is currently trading higher, but it is facing a tough resistance, which might act as a swing area for the pair in the short term. There is no major economic release during the next couple of sessions, so it would be interesting to see how the pair behaves. There are two possibilities. First, it might consolidate around the current levels for some time. Second, it might move a bit lower if it fails to break higher.

There was an important bullish trend line on the 1 hour chart of the GBPUSD pair, which was breached during this past week. The pair traded as low as 1.6007 after the break and currently testing the same broken trend line, which is acting as a resistance. As of writing the pair is trading above both the important moving averages – 100 and 200. This is a nice bullish sign, so the pair might climb higher and break above the trend line. Alternatively, there is a chance that the pair might correct a bit lower from the current levels before surging higher again in the short term. There is one more bullish sign i.e. the hourly RSI has closed above the 50 level.

Alternatively, there is also a possibility that the GBPUSD pair could break resistance from the current levels. It mostly depends on how the British pound reacts around the 1.6120 area.

Overall, one might consider buying dips around the 100 moving average as long as the pair stays above the same.

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Posted By IKOFX Technical Team: Online Forex Broker

 

[team.ikofx]

AUDUSD – 0.8780 Is Pivot Area Moving Ahead

The Aussie dollar managed to hold the 0.8700 support area recently and was seen trading higher against the US dollar. However, it faces a major resistance around the 0.8780 level, which can be considered as a pivot area for the pair in the near term. The NAB business confidence data was released recently during the Asian session, which came as a disappointment. It registered a fall from the previous revised reading of 7 to 5. This might weigh on the Aussie dollar moving ahead. We need to see how buyers react around the 0.8780 resistance zone.

There is a confluence of resistance formed around the 0.8780 level. There is a bearish trend line connecting swing highs sitting along with the 100 hourly moving average. Moreover, the 50% fib retracement level of the last drop from the 0.8897 high to 0.8650 is also around the same area. So, the 0.8780 represents a major hurdle for the Aussie buyers. If the AUDUSD pair breaks higher and settles above the mentioned level, then it would open the doors for a move towards the 0.8820 level in the near term. It is even possible that the pair might head towards the previous swing high of 0.8880 if it gains strength. The hourly RSI has settled above the 50 mark, which is a positive sign moving ahead.

Alternatively, there is also a possibility that the AUDUSD pair fails around the 0.8780 level and moves lower again. In that situation, the 0.8720 level might come into play as a support.

Overall, one might consider buying with a break and close above the 100 hourly moving average in the short term.

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Posted By IKOFX Technical Team: Online Forex Broker

 

[team.ikofx]

Euro Might Get A Boost Against Pound

The Euro surged higher against the British pound yesterday after the awful inflation data in the UK. The Euro buyers took the advantage of same and took the pair closer to the 0.7950 level. The economic data in the Euro zone was also on the disappointing side, which halted the upside in the EURGBP pair else the pair could have easily breached the 0.7980 level. However, the pair has broken an important resistance area, which could act as a support in the near term. There are again several high risk events lined up during the London session. So, we can witness swing moves in the pair in the near term.

There was a resistance trend line on the hourly chart of the EURGBP pair, which was holding the upside in the pair. The stated trend line was breached yesterday, and the pair even retested the same. An important point to note here that the pair stalled around the 23.6% fib retracement level of the last leg from the 0.7904 low to 0.7960 high, which also coincides with the broken trend line. So, there is a chance that the pair might find buyers around the mentioned area and trade higher moving ahead. On the upside, the recent high of 0.7906 is a hurdle for buyers, and once it is breached more gains are likely.

Alternatively, if the EURGBP pair breaks the trend line and closes below then it might take the pair towards the 50% fib retracement level of the last leg.

Overall, one might consider buying dips around the 0.7930-20 area as long as the pair is trading above the last low of 0.7904.

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[team.ikofx]

US Dollar Nosedives Post Terrible Data

The US dollar tumbled yesterday almost all other major currencies. The main reason for this particular move was the terrible economic data, which was released yesterday including the retail sales and PPI data. The pairs such as EURUSD, GBPUSD, AUDUSD and NZDUSD soared higher. On the other hand, USDCHF and USDJPY nosedived post releases. The US dollar was one of the worst performers against the Japanese yen. The USDJPY pair broke an important support area, which ignited a solid bearish move in the pair. Let us see how the technical is shaping up in the short term.

There was a critical support trend line on the hourly chart of the USDJPY pair, which was breached yesterday after the release. The pair traded as low as 105.17 where it managed to find buyers and bounced. However, it is facing resistance around the same broken trend line, which is now coinciding with the 50% fib retracement level of the last drop from the 107.48 high to 105.17 low. So, there is a high probability that the pair might move lower again from the current levels if the mentioned area continues to act as a resistance. So, the 106.30-35 area might be considered as a pivot zone in the short term, and buyers need to break this one in order for more gains moving ahead.

On the downside, a move back towards the recent low is possible in the near term. A break below the same could ignite a run towards the 104.50 level.

Overall, one might consider selling around the 106.10-30 area as long as the prices stay below the 50% fib level.

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[team.ikofx]

Euro Likely To Correct Lower Before Surging Higher

The Euro recently took advantage of the poor economic data in the US, but it somehow failed to maintain the gains against the US dollar. The EURUSD failed to clear important resistance levels time and again. Fundamentally, the Euro area consumer price index released recently came in line with the exception, but it cannot be considered as a positive sign because it declined and registered a reading of 0.3%. The Euro buyers would have loved a better than expected reading. However, they managed to take the pair higher and close to the 1.2820-50 resistance zone. Let us see how it trades in the upcoming sessions.

There is an important resistance trend line on the hourly chart of the EURUSD pair, which acted as a resistance recently. It looks like the pair is consolidating as of writing and it might correct lower towards a major confluence area of 100 and 200 hourly moving averages. It is around the 1.2720-40 area where the Euro might get a lot of bids for one more run towards the 1.2900 area. It would be very difficult for the Euro sellers to take it below the mentioned confluence area, as all major technical indicators are favouring gains in the EURUSD pair. The hourly RSI is also above the 50 mark, which is a bullish sign.

There is even a chance that the pair might not correct substantially in the short term and blast higher. It needs to close above the mentioned trend line to challenge the 1.2900 area moving ahead.

Overall, one might consider buying dips as long as the pair stays above the 100 hourly moving average.

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Posted By IKOFX Technical Team: Online Forex Broker

 

[team.ikofx]

GBPUSD Will Break Eventually

The British pound recently traded higher against the US dollar and closed above the 1.6020 resistance area. The pair is forming a breakout pattern on the hourly chart, which might define the trend in the short term. There is no major economic release today in the UK. However, there are several economic releases lined up during this week in the UK. So, we might notice a lot of moves in the GBPUSD pair. We need to follow and monitor technical levels very carefully, as there is a great chance that the pair might dive one more time if the fundamental releases fail to support the British pound.

There is an important contracting triangle formed on the hourly chart of the GBPUSD pair, which might act as a catalyst for a break in the pair. The pair is currently flirting with the 61.8% fib retracement level of the last drop from the 1.6225 high to 1.5873 low. The most important point is that the pair has managed to close above the 200 hourly simple moving average, which is a kind of bullish sign. However, the pair needs to settle above the triangle area for more gains in the short to medium term. The hourly RSI is well above the 50 level, which might continue to support the pair.

There is even a chance that the pair might fail to break higher and move lower to break the triangle. In that situation, the 200 hourly MA would come into play which might act as a resistance for sellers.

Overall, one might consider selling with a break below the highlighted triangle support area.

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Posted By IKOFX Technical Team: Online Forex Broker

 

[team.ikofx]

Aussie Dollar Awaits Chinese GDP

The Australian dollar was broadly seen consolidating in a range as the market is waiting patiently for an important economic release which is the Chinese GDP data. The Chinese GDP figures will be published in a few minutes from now and expected to register a growth rate of 7.2%, compared to the previous reading of 7.5%. One can expect a lot of moves in the Aussie dollar after the release. If the outcome misses the mark, then Aussie might turn down against the US dollar. On the other hand, it might climb if outcome exceeds expectation. So, let’s analyse the AUDUSD pair and see what is in the store for us.

There is a critical contracting triangle formed on the hourly chart of the AUDUSD pair, which looks set to break after the Chinese data release. Technically, it looks like the pair is going to trade higher. One of the main reasons for saying this is because it is trading above the 100 and 200 hourly moving averages, which is a positive sign. There is one more bullish sign, which is the hourly RSI above the 50 mark. Now, if we consider bearish signs, then the first one would be the failure to break the 61.8% fib retracement level of the last drop from the 0.8860 high to 0.8683 low. So, there are mixed signals which perfectly align with a fundamental release.

There is no denial that the chance of a break higher is more compared with lower. We just need to see how Chinese GDP release plays out.

Overall, one might consider buying with a break above the highlighted triangle resistance area.

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Posted By IKOFX Technical Team: Online Forex Broker

 

[team.ikofx]

Euro Looks Set For A Retest Of Lows

The Euro was seen trading lower yesterday not only against the US dollar but also against the British pound. One of the main reasons for the same was comments made by the ECB officials. The EURGBP pair climbed this past week, but it looks like it might continue heading lower in the short term. There is an important event lined up during the London session i.e. the BOE meeting minutes, which might have a lot of impact on the British pound. Any hint of a rate hike might take the currency higher against almost all major currencies in the short term.

There is a critical bearish trend line formed on the hourly chart of the EURGBP pair, which might act as a swing area for the pair in the near term. The pair has settled below the 100 and 200 hourly moving average, which is a negative sign. Currently, it is trading around the 76.4% fib retracement level of the last leg from the 0.7849 low to 0.8045 high. There is a chance of a correction towards the highlighted bearish trend line where the Euro sellers might appear again to take the pair lower. Moving ahead, there is a high probability that the pair might retest the last swing low of 0.7850 support area as long as it trades below the 200 hourly moving average.

There is even a possibility that the pair might not correct higher, and start trading lower from the current levels. This mostly depends on the upcoming risk event during the London session.

Overall, one might consider selling rallies as long as the pair is trading below the mentioned trend line.

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Posted By IKOFX Technical Team: Online Forex Broker

 

[team.ikofx]

US Dollar Looks Set To Gain Traction

The US dollar blasted higher yesterday, as the US consumer price index which was released during the NY session managed to register a better than expected reading. It pulled off good gains against the Euro, British pound and the New Zealand dollar. The US dollar somehow failed to capitalize against the Japanese yen to a certain extent. The USDJPY pair failed around the 107.35 level and currently correcting lower. However, the bias remains bullish in the pair, and there are high chances that it might surge in the short term. Let us see what the technical indicators suggest for the pair.

There is a critical bullish trend line formed on the hourly chart of the USDJPY pair, which has managed to hold the downside a couple of times. The pair is consolidating as of writing, and it is possible that it might head lower for one more time before gaining bids again. The mentioned trend line also coincides with the 38.2% fib retracement level of the last leg from the 106.23 low to 107.36 high. The most important point is that the 100 and 200 hourly moving averages are also sitting around the same area. So, if the pair moves a bit lower from the current levels, then it might find buyers around the 106.80-90 support area.

There is even a possibility that the USDJPY pair might not move lower and continue heading higher from the current levels. In that situation, the last high might present a hurdle for the US dollar buyers.

Overall, one might consider buying dips as long as the pair stays above the highlighted trend line.

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Posted By IKOFX Technical Team: Online Forex Broker

 

[team.ikofx]

Euro Remains A Sell Against The Dollar

There was a flurry of economic releases yesterday in the Euro zone, which affected the Euro to a great extent against the US dollar. The EURUSD pair was seen trading lower initially and then it traded back higher. There is no denial that the bearish pressure is intact on the pair and it might continue trading lower in the short term. Only when we get a few bullish signals we can say that the Euro is ready to move higher. The Euro area manufacturing PMI was definitely a winner yesterday. Just like this we need more reasons fundamentally when we can say that there are chances that the Euro might trade higher in the short term.

There was an important bullish trend line formed on the hourly chart of the EURUSD pair, which was broken recently. The same trend line acted as a hurdle yesterday, and there is a chance that it might continue to act as a resistance for the pair. There is one more side of the coin i.e. the pair has bounced a number of times from the 1.2610 support area, which is proving to be an important support area. If the pair trades higher from the current levels, then it would be interesting to see whether it fails one more time around the 1.2680-90 resistance area.

There is even a possibility that the EURUSD pair might continue trading lower from the current levels as well. We need to see how the pair reacts around the 1.2600-10 levels if reached in the short term.

Overall, one might consider selling rallies as long as the pair stays below the 1.2710 level.

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Posted By IKOFX Technical Team: Online Forex Broker

 

[team.ikofx]

British Pound Holds Positive Tone Against US Dollar

There British pound dropped against the US dollar recently, but it managed to gain bids around the 1.60 level which acted as support on a number of occasions. The economic data released in the UK during this past week was not that great, which kind of discouraged the British pound buyers in the short term. However, the GBPUSD pair holds the positive tone and we need to see how it trades in the upcoming days. There is a chance that the pair might dive one more time in the coming sessions, but it can be considered as a buying opportunity.

There is a crucial bullish trend line formed on the hourly chart of the GBPUSD pair, which might act as a support for the pair if it moves lower from the current levels. There are several bullish signs on the hourly chart, including the most important one i.e. the pair trading above the 100 and 200 simple moving averages. The pair has closed above both key moving averages and managed to clear the 50% fib retracement level of the last fall from the 1.6183 high to 1.5993 low. So, the pair might head towards the last high in the short term. There is a chance that it might dip one more time to retest the highlighted bullish trend line which might act as a support moving ahead.

So, on the downside the 1.6040-30 levels remain an important support area for the pair where buyers might appear.

Overall, one might consider buying dips as long as the pair stays above the mentioned trend line.

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Posted By IKOFX Technical Team: Online Forex Broker