In Monday’s analysis (after upward movement in the morning) I pointed two scenarios: successful rebound or deepened falls: “it is likely that today will be first upward session since a week” and “however if demand fail and declines continue next support will be at 1.4000”.
Morning’s gains were lost by the end of the day and as a result at chart you can see next red candle with long upper shadow. As expected, price moved in the direction of 1.4000, but rebound on Thursday was 80 pips higher during ECB press conference. That level was 6 years low and support at that level can be found at weekly or monthly time-frame. Today price returned above 1.4250 and nearest target for upward movement is 1.4400. That level is strengthened by Fibonacci 38,2%. After its breakout next resistance is at 1.4600 strengthened by Fibonacci 61,8%. Alternatively if bearish sentiment is back nearest supports will be located at: 1.4250, 1.4080-1.4000.
Time-frame H1
Time-frame monthly
