According to the momentum indicators, in the near term the asset’s bullish momentum looks to running out of steam. The RSI is turning lower from 65 peak, Stochastic confirmed a bearish cross in the overbought area while the MACD is heading northwards however its signal line holds below zero. In contrast, the intraday 10- and 20-hours EMA are moving aligned higher suggesting further intraday gains.
In case of a bounce off the upper channel line (0.6075), the price could challenge the 50% Fibonacci retracement level (0.6092) of the drift from 0.6685, and the R2 at 0.6111. A strong close above the latter tonight could turn the focus to March 31 peak (0.6214) and to 61.8% Fib. level (0.6230).
In summary, daily picture remains bearish with lower highs being developed and momentum indicators negatively configured. Near term picture had turned positive in the Asia session, suggesting further gains intraday however these gains looks to be temporary and limited as the intraday bullish momentum has started falling.
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