Since bouncing from the weekly down trendline, 1.4570 has proven to be a tough resistance as it tried, and failed to breach the daily .618% fibonnacci retracement level of the 1.4940-1.3969 down swing on the daily timeframe. Currently, the .50% level is being tested, just above previous resistance and also just below the 4hr trendline. This trendline has little influence, and simply stands between the significant levels on the daily chart.
As a result, although breached to the downside, support continues to hold just below. A close back into the buy zone on the 4hr could signal buying opportunities, with a close watch at the 1.4570 resistance for follow-through. A consolidation range has been established on the smaller timeframes as 1.4460 continues to hold as support. If a break were to take place below this level, 1.4350/1.4400 represents a band of support from which there would be risk of a bullish breakout. In my opinion, only a breach of 1.4350 would be sufficient in providing downside momentum for a test of 1.4330 daily support. To the upside, the next major resistance lies at 1.4670s.
My general outlook is bullish, but await confirmation by way of a breach of the levels mentioned.
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