This pair began declining on 27 July into the first 11 days of August before catching a bid at 85.50 support. Bulls have been in charge and pushed the pair up with 230 pips and have been consolidating (sideways movement) for the last few weeks since the sell-off.

Traders can watch the 88.20 handle/area this week as it is also a confluence of resistance. Whether the pair will find selling or buying pressure here is unknown as this may also be a corrective move or a next leg higher after the rally that began in June. If this is a corrective move I will wait for a H4 close below the channel support that would open up to the August low at 85.50 with next support at 84.75/50 zone.

A close above 88.20 would negate bearishness and make way for a re-test of the 89.72 resistance area that is also the current 2017 high.


Source: MARYNA

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