Weekly Report 27 Feb-02 March
Looking at the chart from a different perspective, attempting to analyze the current rally; we can notice the following:
A)Price has broken out of the long consolidation period; usually such consolidation precedes major trends.
B)ADX trend strength indicator is above 60.00 (on the bullish side) for the first time since 2006, hinting the current rally may has something different in store.
C) RSI is at extreme levels we haven't seen since a while, hinting the major demand for the pair, thus price is extremely overbought and a downside correction maybe needed.
Accordingly, any downside correction should be limited to a retest of the breached resistance areas around 80.00, as the outlook for the pair this week is bullish.
|Recommendation||Based on the charts and explanations above our opinion is, buying the pair around 80.20 targeting 81.65 and stop loss below 79.15 might be appropriate.|