USD/COP may rise 2723 - 4093 pips

Our pivot point stands at 3949.50.

Our preference

Rebound towards 4008.40.

Alternative scenario

The downside breakout of 3949.50 would call for 3926.60 and 3912.90.

Comment

The RSI is trading below 30. This could mean that either the pair is in a lasting downtrend or just oversold and that therefore a rebound could shape (look for bullish divergence in this case). The MACD is above its signal line and negative. The configuration is mixed. Moreover, the price is trading above its 20 period moving average (3967.20) but under its 50 period moving average (3986.20).

Supports and resistances

4035.60 **

4022.00 *

4008.40 **

3994.70

3967.47 last

3958.50

3949.50 **

3926.60 *

3912.90 **

Number of asterisks represents the strength of support and resistance levels.