The sharp decline from August resulting in a quick break below parity has yet to be confirmed. For the time being, the pair continues to be well bid.
The weekly 20 moving average is flat which means there is no directional bias over the long term. The pair has bounced on top of the lower bollinger and is now trading around 1,0650 corresponding to the 20 moving average.
It is not easy to foresee the immediate price actions but as long as 1,05 is support (last swing daily low), the short term bullish trend remains intact and another test of 1,10 is likely.
Inversely, a break below 1,05 would qualify the current rally as a pullback and expose a bearish resumption.
Provided by atf-forex-trading.com