- There is an ascending triangle on the daily chart, which is close to breaking out.
- Prices remain above both the 50 and the 100 MA.
- Bullish sentiment remains as long as prices remain above $1.229.
If we look at the daily chart, there has been an ascending triangle forming since the start of the year. What this tells us that there is a generally higher demand for the asset, and thus buyers scoop up any dips as the chart shows higher lows. The horizontal resistance at the top of the chart, however, shows there is still a significant amount of selling pressure. We can suspect a higher probability that the market will break to the upside when it comes to an ascending triangle because of the higher lows formed on the chart.
The horizontal resistance is at 1.24, but it’s within a small range. Price did break above this for a moment finding resistance off the R1 pivot point line, and is currently trading on the horizontal resistance from the ascending triangle.
For now, prices remain above both the 50 and the 100 MA but is currently testing the 50 MA which may hold as support.
If prices fall below $1.229, then the bullish sentiment will shift for now.
The probabilities favor the bulls in this situation, but only if the price holds above $1.248.