The outlook remains favorable for the cross, which has already rebounded strongly since early March low at 0.7000. A small ascending channel has formed in the daily chart, and the daily indicators are very upbeat.
Under these conditions, keep an eye on the resistance zone between 0.7180-0.7200, as a breakout above this zone would strengthen the upward momentum, with a new target the resistance levels around 0.7240 and 0.7290.
Note that, 200MAs spread between 0.7215-.07240.
Flipside supports located at 0.7095, 0.7040 and 0.7000.
Interestingly the cross pauses the rally at the higher end of the 14-month descending channel, which coincides with 100MA. Lack of local macro economic data until the end of the month, the near-term trend depends on the USD action.
Further dollar weakness could push the cross above the bearish channel.
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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