Volumetric analysis on August 22
The upward trend continues. There was not even a serious rollback of prices down on the yesterday trading sessions, and goal 1.1580 was achieved in the first half of the US session. However, it is worth remembering that the current futures contract during the first half of summer was traded at current prices. And in fact, the resistance at 1,1580-1,1630 should be feared, because it could stop the growth of quotations.
As for the current initiative, it is certainly bullish. And if we analyse the structure of the growth, we can find the price range of 1.1540-1.1490, where the volume is maximized. Therefore, we assume that the upward movement though may be limited by resistance, but still priority. And when the price is rolled back down to the range of 1.1540-1.1490, wait for the quotes to stop at least to the current resistance.
The technical picture looks similar to the EURUSD chart, but there is one important assumption, there is no special resistance. So, there is still a potential to growth, and its goal should be to set to 1.2930 and 1.2955 price levels. If we see a decline in quotations, then this should be regarded as a correction, at least until the price has fallen below the 1.2810. On the way down, the pair may find support in the price ranges 1.2870 - 1.2850 and 1.2835 - 1.2810. The open interest of the buyer could remain there.
It is worth to mention that futures contract was replaced. This happened recently, and the previous flat can be written off for the period of rollover, when investors leave the old contract and lay new expectations in a fresh one. After the yesterday's growth of quotations, we can assume that these investors expect to see an upward trend. And this outset with a volume that is in the price range of 65.60-64.70, we will perceive as support. Any pullback of the price down would be identified as a correction, and growth as the main movement. Accordingly, we should expect a price reaction and possible rebound from the range of 65.60-64.70 towards to resistance at 67.00.
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