As the USD pulls back further, a new daily candle has opened, showing a possible support at the 119.4 mark. With the trend line as a support as well as the 80 EMA as a support approaching, this pair shows evidence of rebounding and going back to the previous high of 122. The 80 / 120 EMA is above the 200 EMA, indicating a long term bullish trend. The support and resistances still hold at this point of time. THe ADX is inconclusive, ranging in the middle of the channel with a weak angle to the upside, showing that it is indeed possible for a rebound to happen. Buyers will be pleased to know that this is an excellent opportunity to enter the market on a buy.
The H4 Chart shows a much more interesting picture. As the resistances of 122 and 121.1 have been held and the 119.4 support has been held, this pair has a stronger evidence of going up to 121 first before 122. However, the candles are below the 200 EMA mark, along with the 20 EMA cutting both the 50 EMA and the 200 EMA . This signifies a bearish movement. The Stochastic Oscillator is inconclusive and is pointing downwards in the middle of the channel. The ADX however, shows a relatively sharp angle to the upside which shows that the trend strength is beginning to increase again, once again favoring the sellers. The H1 Chart shows many supports and resistances being formed. With both 20 / 50 EMA cutting and positioned below the 200 EMA, the H1 Chart shows a possible continuation of this bearish movement as well. The Trad MACD is inconclusive, cutting the red line consecutively at the 0 level mark. The ADX shows a short drop which could also indicate a bullish movement.
In summary, this pair is currently showing conflicting technical results. For both the buyers and the sellers, please take note and perhaps it would be wise to stay in the sideline for awhile
Good luck and always use stop losses, traders.