USD/CZK may rise 79 - 117 pips

23.351 is our pivot point.

Our preference

The upside prevails as long as 23.351 is support.

Alternative scenario

The downside breakout of 23.351 would call for 23.287 and 23.248.

Comment

The RSI is above 70. It could mean either that the pair is in a lasting uptrend or just overbought and therefore bound to correct (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is trading above both its 20 and 50 period moving average (respectively at 23.341 and 23.341). Finally, the USD/CZK has crossed above its upper Bollinger band (23.425).

Supports and resistances

23.625 **

23.586 *

23.548 **

23.510

23.431 last

23.376

23.351 **

23.287 *

23.248 **

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