traded higher today after it hit support slightly below the 74.62 barrier, marked by the inside swing high of Dec. 31. Overall, the pair continues to trade above the upside support line drawn from the low of Nov. 19, and thus, we would consider the short-term picture to still be positive.
If the bulls are willing to stay in the driver’s seat and manage to break Tuesday’s peak at 75.03, then we may see them targeting the high of Jan. 8, at 75.58. A break above that hurdle would confirm a forthcoming higher high and may initially target the 75.97 level, marked as a resistance by the highs of Apr. 1 and 15, 2019. If that level is not able to stop the advance, then we may experience extensions towards the peak of Mar. 26, 2019, at 76.49.
Taking a look at our short-term oscillators, we see that the RSI rebounded and just poked its nose above its 50 line, while the MACD, although fractionally below both its zero and trigger lines, shows signs that it could also turn up soon. Both indicators suggest that the pair may start picking upside momentum soon, which is in line with our view on further short-term advances.
Now, in order to abandon the bullish case and start examining whether the bears have stollen the bulls’ swords, we would like to see a clear and decisive dip below 73.50, marked by the inside swing high of Dec. 21. This would take the rate below the aforementioned upside line and may pave the way towards the 72.83 territory, which provided support between Dec. 21 and 23. Another break, below 7283, may extend the fall towards the inside swing high of Nov. 16, at 72.30.
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