4-Hour Analysis:
Big Picture: Yesterday’s session was volatile once again, but the bulls prevailed by holding onto intraday supports. Going forward, a bullish-flag formation is being pinned on the lower-time frames, suggesting that bulls may once again lead the charge if they can hold onto the immediate supports and demonstrate dominance above the congestion zone. Volumes have seen an increase suggesting that active participation has improved.
On the Upside price was able to break over the significant resistance zone of 38,300 to 38,400, and a move higher is now being observed. This was a significant barrier during the previous few days, limiting the pair’s upward potential. After successfully breaking through this level, the price has now challenged the level of 38,800, which was earlier identified as the primary resistance above the congestion zone. Furthermore, the bullish flag formation is still aiming for levels between 39,250 to 39,400.
On the Downside there is lower-time frame support from 38,200 to 38,140 levels. Holding onto this region would further improve the bullish momentum, meanwhile failure on the higher resistances are likely to easily overwhelm this supportive region and once again push price lower into the higher time-frame supports at 37,980 followed by 37,560 where the key retracement is positioned of the current rally.
