A second visit to the very strong level 1.4990 was seen on Tuesday, and was followed by a fantastic rising move, which broke the important resistance at 1.5050. The subsequent rising move which followed was able to reach a 20-day high at 1.5251 yesterday.
On the way higher, a number of resistance levels were overtaken, however, another important resistance is just above at 1.5266 / 69. The Case Price Breaks above in this Area, it Will be Expected to target the very important 1.5320, which is provided by the falling trend line from July's 6-year high.This level is by far the most important resistance for the time being. A break above it will turn the medium term trend from "down" to "up" or at least "sideways". A break above it would significantly boost the bullish potential on both the short & medium terms, and would make it logical to expect the price to target at least one of the medium term retracement levels, which start at the first level 1.5475 followed by the first. Fibonacci level at 1.5552.
As for the support, using trend lines after very sharp advance should be done carefully. Some trend lines may be too steep to be taken seriously.Nevertheless, the rising trend line from Tuesday's bottoms is currently running just very close to Tuesday's high 1.5198 (after adjusting it to include yesterday's low). Without breaking below this level, there is no reason to expect a falling correction. But if the price can break below 1.5198, we could expect the price to target at least one of the micro term retracement levels at 1.5175, 1.5150, 1.5120, 1.5089 & 1.5064. Reaching at least one of these levels will come highly expected once the price breaks below 1.5198, but breaking all of them is not expected for today. A bottom very close to any of those levels (especially 1.5120) could very much be followed by a rising move that targets a test of the very important 1.5320. On the other hand, if the price surprises us by breaking below 1.5064, chances that we will test 1.4990 one more time will become bigger, and this time 1.4990 will be expected to give way!
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