Source: Forex Analysis
BTC did test our first downward target at the price of $8.944. I still expect more downside movement today and potential test of next downward target at $8.610.
MACD oscillator is showing increase on the downside momentum, which is good sign that sellers are in control and that selling on the rally is preferable strategy for today.
I also found the breakout of the Bollinger band lower boundary, which is confirmation of the breakout. Most recently, I did notice that Bollinger bands were in contraction mode and today we got the downside breakout.
Support levels are seen at the price of $8.940 and $8.610. Resistance level at $8.240.
The material has been provided by InstaForex Company – www.instaforex.com