Strong monthly close last month and this month so far, we have pulled back below 1.2400 and pulled back up to rejected this zone as support.
Last week we saw an formation - however, our 8 as held price as a strong supportive area. Depending on how this week closes out, we may see a . EMAs are upward facing.
Higher highs and higher lows are forming on this pair - price pulled back below 2.4000 and has been reacting around this area for some time. However, I believe momentum has caught up and today I am looking for a close above 1.2400. Price has also rebounded above our EMAs.
Price has reacted off this key zone of 1.2400 where it has tested and pulled back to our preferred fib region. When analyzing this pair in the context of higher time frames, we can see a long opportunity. EMAs have crossed back to the upside in alignment with the bigger picture and we have successfully breached 1.2400 with a candle taking out 8 hours of prior price action.