Single currency to US dollar breaks below the parallel triangle and moves towards the lower band of consolidation from the past three weeks. Currency pair is falling sharply since yesterday and now entered the 1.3300-1.3350 zone, where plenty of demand action took place so far. Any break of this area could engage a move to 1.31 in medium term, where we find another important low (September 2013).
However, there is a high risk that we will remain in consolidation and this is our basic scenario. Perhaps the center of price action gravity will move itself around 1.3370 instead of 1.3390/1.3400. What is more, selling now would mean entering a short position near support zone – which can be considered a trading malpractice.
The above analysis is one in a series of analyzes prepared by Comparic team in collaboration with XM broker. Other analyzes can be found every day on XM’s site. Open real XM account or try DEMO version for free. Promotion – 30% bonus up to $10,000!