Note the possible inverse head and shoulder formation discussed here –
Pair’s bullish break from falling trend line on the hourly chart has opened doors for a test of a larger descending trend line resistance seen on the daily chart around 103.80-104.00.
However, the hourly RSI has hit the overbought territory; hence the spot could trade in the sideways manner in the range of 102.50-103.00 levels before resuming the upside.
A bullish day end close above 50-DMA would add further credence to the bullish view mentioned above.
On the lower side, only a day end close below 101.20 (September 7 low) would signal bullish invalidation.
Pair’s bullish break from falling trend line on the hourly chart has opened doors for a test of a larger descending trend line resistance seen on the daily chart around 103.80-104.00.
However, the hourly RSI has hit the overbought territory; hence the spot could trade in the sideways manner in the range of 102.50-103.00 levels before resuming the upside.
A bullish day end close above 50-DMA would add further credence to the bullish view mentioned above.
On the lower side, only a day end close below 101.20 (September 7 low) would signal bullish invalidation.
