Technical analysis
Mohamed Samy
As marked on the chart, We have a demand zone extending between 1.5590-1.5345 which stopped the bearish rally from 1.6617.
This mentioned rally was contained inside a narrow bearish channel which was broken on Monday last week with no bullish follow up.
September 23, 26 & 27 we had three successive bullish daily candlesticks as a reaction of the bulls at the marked demand zone.
Now the pair is consolidating inside a range 1.5533- 1.5715 in which buyers and sellers are satisfied with the current prices.
It's important to watch the following support levels: 1.5480 & 1.5350 and resistance levels : 1.5780 & 1.5900 on the long-term scale.
Here we have the 4H chart, As we said after breakout of the bearish channel we didn't have the expected follow up from bulls but we had a sideway range between 1.5533- 1.5715.
In order to determine the next heading for this pair, we need to see obvious breakout out of this range.
Downside break opens the way for the pair to visit 1.5345 again. However break of this range to the upside opens the way to 1.5780 then maybe it visits 1.5900.
Now It's suggested either to wait until we get a clear breakout of the current range OR buying its low and selling its high until we get the breakout.
http://instaforex.com/forex_analysis/40250/?x=OUE
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