A break above the downtrendline with very high volume sets the stage for more to come, especially as the market also showed a higher low in a broader sense (see arrows).
Thus, risk reward for a long position is pretty attractive. In a broader view, there is good room north if bulls are able to build on this move. For now watch for some shor-term resistance at the 0.3350/0.3500 zone where a downward sloping line (connecting recent tops) and the top end of the Bollinger Bands resides. Above there 0.4200, horizontal resistance should be next.
Ideally, dips toward 0.3000/0.2950 should see renewed buying interest. In a wider view these signs for bottom forming could set the stage for a return to the 1.4000/1.7000 area.
Thus, risk reward for a long position is pretty attractive. In a broader view, there is good room north if bulls are able to build on this move. For now watch for some shor-term resistance at the 0.3350/0.3500 zone where a downward sloping line (connecting recent tops) and the top end of the Bollinger Bands resides. Above there 0.4200, horizontal resistance should be next.
Ideally, dips toward 0.3000/0.2950 should see renewed buying interest. In a wider view these signs for bottom forming could set the stage for a return to the 1.4000/1.7000 area.