The 13 November low at 0.8656 was not confirmed by a corresponding new lows on the daily MACD and RSI indicators and bull divergence was noted. Since then the market surged to challenge the 20 October lower reaction high at 0.8940.
While Wednesday’s long legged bullish doji low at 0.8810 holds, the chart structure continues to favours a clearance of the 0.8940 barrier. That would also confirm a two month bullish structure with scope towards an equality target at 0.9087, which is also in a close proximity to the year-to-date high at 0.9099 (28 August).
A lapse through the 0.8810 spike low is required to defer near term upside scope and suggest further consolidation ahead.
Kamran has been practicing TA since mid 1990s. His last role was at Informa Global Markets (formerly MCM and S&P’s MMS), where he worked as a technical analyst for nearly 11 years at their London offices. He was a member of a global team of technical analysts, producing 24 hour live analysis for their subscribers, which included top investment banks, central banks, fund/hedge fund managers and other big market players). Kamran has in depth knowledge and experience of using TA on all time scales, developing trading strategies and trading systems. He has a special interest in inter-market and cross asset technical analysis. Kamran holds STA diploma in TA and he has passed levels 1 & 2 of the Chartered Market Technician (CMT) program (MTA/CMT Institute, USA). Currently he is learning to code, with an aim to incorporate machine/deep learning into his analysis.