Weekly bias remains bullish. List of indicators applied on the 4 hours time-frame used for analysis includes:
Moving Averages 21 and 55 = Buy
Parabolic S.A.R = Buy
R.S.I = Buy
MACD = Buy
SSRC(customized stochastic) = Buy
Weekly Central Pivot Point Bias = Bullish
Candlestick formed from previous week = Bullish ( break and close above 120.48 resistance)
The pair’s strong rise, break and retest of 120.48 minor resistance is taken as the first sign of up trend resumption. Initial bias remains on the upside this week for 121.84 resistance first. Break will confirm this bullish case and target 124.13 key resistance next. On the downside, below 119.89 minor support will dampen the bullish case and turn bias neutral first.
In the week ahead, markets will be watching Thursday’s U.S. retail sales report for further indications on the strength of the recovery which will determine Interest rate hike by the Feds.