Price is testing our first support at 1.234 (horizontal overlap support, 61.8% Fibonacci retracement). A strong bounce might occur above this level, pushing price up to our major resistance at 1.2395 (horizontal swing high resistance, 100% Fibonacci extension). Stochastic (55,5,3) is also seeing a bullish divergence, a good precursor for a potential rise in price. Trading CFDs on margin carries high risk. Losses can exceed the initial investment so please ensure you fully understand the risks.
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Desmond Leong runs an award-winning research firm (The Technical Analyst finalists 2018/19/20 for Best FX and Equity Research) advising banks, brokers and hedge funds. Backed by a team of CFA, CMT, CFTe accredited traders, he takes on the market daily using a combination of technical and fundamental analysis.