Current price: 1.3140
Key point: 1.3120
Our preferred strategy: Buy positions above 1.3120 with a first target of 1.3250 and then a second target of 1.3370.
Alternative scenario: Stop loss and trend reversal upon breaking the 1.3080 level, targeting the 1.3000 level.
Technical commentary
The pair has been moving downwards on the 4-hour timeframe from its September peak until it reached the support level of 1.3000, from which it rebounded, breaking through the resistance levels of 1.3120-1.3140. If it holds above these levels and breaks the downtrend line, the pair is expected to rise to 1.3250 and then to 1.3370.
