A bullish breakout above the zone of 1.2770-1.2800 was observed on July 15.
The long-term bullish target was projected towards the level of 1.3270 (100% Fibonacci Expansion). However, bulls have moved further above the resistance level, which was faced on September 23.
A significant bearish rejection was observed around 1.3450 where 141.4% Fibonacci Expansion was roughly located.
Later on October 1, bearish persistence below 1.3270 (Fibonacci Expansion 100%) was expressed to maintain enough bearish pressure to expose the next support levels around 1.2910 and 1.2750 where long-term buy entries should be considered.
On the other hand, the level of 1.3075 constitutes acting as intraday resistance to be watched for intraday sell entries.
It offered a valid sell position at retesting which took place on Tuesday last week.
This week, the market has pushed back again towards the intraday supply zone of 1.3050-1.3075, which may offer another sell entry if enough bearish rejection is expressed.
Generally, the market remains trapped between the levels of 1.2800 and 1.3075 until a breakout in either direction occurs.
Conservative traders should wait for bearish pullbacks towards the recent breakout zone (1.2800-1.2750) for a valid buy entry as the breakout level acts as strong support.
S/L should be located below the level of 1.2700. T/P levels should be located at 1.2850 and 1.2900.
The material has been provided by InstaForex Company – www.instaforex.com