The green highlighted zone between 1.2700 and 1.2720 appears to be a strong support area. Price action indicates multiple retests of this level, suggesting potential buying interest. RSI levels on lower timeframes (e.g., 15m, 30m) are approaching oversold conditions, signaling a potential bounce from this support.
Resistance Levels:
Psychological resistance is set around 1.2800, where sellers could emerge. If momentum continues, the next major resistance is at 1.2900, as highlighted.
EMA Alignment:
The 50 EMA is trending above the price on the 15m and 30m charts, indicating short-term bearish momentum. However, price action nearing the green zone indicates possible consolidation or a reversal.
MACD and RSI:
MACD shows bearish momentum but is flattening out, hinting at potential divergence or a slowdown in selling.
RSI is moving closer to oversold levels, supporting a possible buy setup on pullbacks.
Recommendations:
Buy Setup: Entry: Buy between 1.2700 and 1.2720. Stop-Loss: Below 1.2680, as this invalidates the support zone and suggests further downside. Take Profit: Target 1: 1.2800 (Psychological resistance). Target 2: 1.2900 (Next major resistance level).
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