The pair is moving up, so the local trend is bullish. We will try to understand if there is the possibility of reversal. As usual, we will use two types of analysis – technical and fundamental.
On the 1W TF, the 200-EMA is moving down – that means that the global trend is bearish. There is a divergence between the price and MACD histogram, which gives the first signal to buy. The ADX line is beginning to reverse.
On our working 1D TF, the Williams %R is in the overbought zone. The MACD lines are widening. There is the possibility that after reaching the 200-EMA the pair will reverse and start moving down. So, it is possible to try to open short positions from 1,0612.
There are several important documents which will be published next week. These are Australian Home loans for February on Monday (the forecast is -2%) and New Zealand’s Electronic Card Retail Sales for March on Thursday.