The pair is in an established up-trend but it has reached formidable resistance at the 1.30 psychological level, where it has formed a temporary top today. There is a possibility it could stall, rotate and even perhaps reverse lower from this major level.
The move up from the May lows has formed an a-b-c measured move, which is now looking complete, with leg C longer than A, but there are no bearish signs yet from price to indicate it has finished, as the exchange rate keeps making new highs.
The up-trend will probably just carry on higher, but first ideally I would want to see a clearance of the 1.30 bar, by a 20 point margin, so with a move above 1.3020. This would then probably be expected to reach the next potential resistance level at 1.3100.
The pair is in an established up-trend but it has reached formidable resistance at the 1.30 psychological level, where it has formed a temporary top today. There is a possibility it could stall, rotate and even perhaps reverse lower from this major level.
The move up from the May lows has formed an a-b-c measured move, which is now looking complete, with leg C longer than A, but there are no bearish signs yet from price to indicate it has finished, as the exchange rate keeps making new highs.
The up-trend will probably just carry on higher, but first ideally I would want to see a clearance of the 1.30 bar, by a 20 point margin, so with a move above 1.3020. This would then probably be expected to reach the next potential resistance level at 1.3100.