Source: Forex Analysis
The price has been testing our descending resistance line multiple times yesterday and is seeing strong support above 1.3309 (Fibonacci retracement, Fibonacci extension, horizontal overlap support). We expect to see a strong bounce above this level to push the price up to at least 1.3522 resistance (Fibonacci extension, horizontal swing high resistance). We have to watch out for the descending line which would pose as intermediate resistance to this move.
Stochastic (55,3,1) is starting to make a bullish exit from its descending resistance-turned-support line and this could trigger a strong corresponding rise up in price.
Buy above 1.3309. Stop loss is at 1.3202. Take profit is at 1.3522.
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