On the daily chart, the pair reached the August low at 128.00. The wave of growth since mid-August was completely neutralized, but at the same time the pair reached a strong support, which was previously at 129.00. In addition, the size of the decline wave without corrections is relatively large - 270 points. This increases the probability of a rebound and the formation of a "double bottom" by 128.00. Therefore, it is too early to count on a further decline to overcome the level of 128.00 - the probability of a rebound is high.
On the four-hour chart, the pair rose from the support level of 128.00 to the nearest resistance level of 128.60 (at the minimum on September 16 and the maximum on September 21). A bullish divergence was formed between the lows of the pair and the MACD histogram. This shows a slowdown in the decline and an increase in the probability of a reversal, although the signal has not yet been confirmed (if the pair overcomes 128.60, the sequence of decreasing relative highs of the pair would be broken). A bullish signal is the relatively large size of the growth candle from 128.00 - now the decline is slow, and the growth is a strong impulse - this can also indicate a reversal, since in the wave of decline since September 3, with slow growth, the declines were rapid. For ADX, the downward trend continues: the excess of DM - over DM+ remains stable, ADX is at a high level.
- Resistance levels: 128.60; 129.00
- Support level: 128.00