4HTF – The price is still currently slightly above the 9EMA. Approaching simultaneously the 200EMA, 23.6 Fibo Correction level and our local .
Here we have to consider 2 possible scenarios:
1. If the price breaks these levels (200EMA, 23.6Fibo and local ) up, our next possible target area will be 0.88869 (38.2 Fibo).
2. This could very well be a strong area for a reversal to the downside. In case the pair takes this route, and breaks the 9EMA and (local) 23.6 Fibo down, then the BEARS target areas will be 0.87388 (38.2 Fibo) followed by 0.87212 area (50% Fibo correction).
Fundamentally – today Canada released the fact for GDP at 0.3% - but the better than expected figure did not have much influence on the pair.
As a result, a break above 200EMA and 23.6 Fibo correction to the upside will give us target area 0.88869 (32.8 Fibo). A move to the downside will give us target areas of 0.87379 (38.2 Fibo) followed by 0.87212 area (50% Fibo correction).