Currently, the price on the 240 chart is positioned between the 200-day and 50-day moving averages (MA). The market is experiencing a bullish uptrend, but it appears to be approaching the 50-day MA at the 1.09142 level. In this market, two scenarios are possible.
Scenario 1: if the price continues to rise, it could potentially test the 1.09142 level and proceed further to test the 61.8% Fibonacci retracement level at 1.09176. If this level is successfully tested, the price might continue to climb higher and test the 1.09264 level. If the bullish momentum persists, further upward movement could lead to tests of the levels between 1.09416 and 1.09503. Should the market continue to show strength, the price might even reach the levels between 1.09706 and 1.09840, signaling continued bullishness.
Scenario 2: if the price reverses and moves downwards, it may test the support level between 1.08960 and 1.08894. A successful test of this support level could push the market further downwards to test the 1.08803 level. If the downward momentum continues, we could see the price go even lower to test the 50% Fibonacci retracement level at 1.08634. It is important to note that the 1.08634 level holds significant psychological significance, and a decisive move could be expected if bearishness persists.
Traders should exercise caution as the market may potentially range between the levels of 1.08634 and 1.09840.
Key levels to closely monitor in this scenario include 1.08894, 1.08780, 1.08634, 1.08582, 1.09142, 1.09264, and 1.09503.
