1-Day Analysis:
Big Picture: Each side remained active throughout the weekend, triggering short-term movements on both sides. However, the bullish advance caused exhaustion, resulting in a significant counter-move from the sellers. Price has dropped dramatically as sellers begin the week aggressively. The corrective pull-back had almost touched the mid-point level, from which a recovery is now being tracked.
On the Upside the price is presently holding the macro 50% Fibonacci retracement. Holding this level might allow the price to channel higher towards the 42,960 mark, where another significant barrier currently exists. Furthermore, if a similar rejection is seen from higher levels, the momentum might shift to a short-term sell on strength. The next resistance level above 42,960 is at 43,680. Meanwhile, above this level, a greater rebound is probable.
On the Downside on lower time frame, 42,050 has been established as the primary support level. Following this support, the next level of support is between 41,400 to 41,300. For the pair, this is again another solid intraday supporting area. Meanwhile, the mid-point level around 40,520 provides significant support in the immediate term. Any short-term decline below this level is unlikely to result in significant selling, although pressure buildup below 40,520 might result in another round of selling.
