has been trading in a trendless mode recently. On Mar. 25, it broke above the downside resistance line drawn from Feb. 24, but has yet to break above the 1.7435 zone to confirm a forthcoming higher high and complete a bullish reversal. Until that happens, we will stay neutral.
A clear break above 1.7435, or even better, above 1.7475, would complete the reversal and may initially pave the way towards the 1.7595 zone, which provided resistance on Mar. 10 and 11. If that zone is not able to stop the bulls, then its break may pave the way towards the high of Mar 4, at around 1.7680.
Looking at our short-term oscillators, we see that the RSI rebounded from near its 50 line, while the MACD lies above both its zero and trigger lines, pointing up as well. Both indicators detect upside momentum and support the idea of further advances in this exchange rate. That said, as we already noted, we prefer to wait for a break above 1.7475 before we get confident on that front.
On the downside, the outlook may turn bearish again upon a dip below 1.7180, which is the low of Mar. 25. This will confirm a forthcoming lower low on the daily chart, and may see scope for declines towards the low of Dec. 21, at around 1.7050. Another break, below 1.7050, could encourage the sellers to aim for the 1.6950 zone, defined as a support by the low of Dec. 15.
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