USD/RON may rise 126 - 183 pips

Our pivot point is at 4.5958.

Our preference

The upside prevails as long as 4.5958 is support.

Alternative scenario

The downside breakout of 4.5958 would call for 4.5863 and 4.5807.

Comment

The RSI is trading above 70. This could mean that either the pair is in a lasting uptrend or just overbought and that therefore a correction could shape (look for bearish divergence in this case). The MACD is above its signal line and positive. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 4.5956 and 4.5945). Finally, the USD/RON has crossed above its upper Bollinger band (4.6058).

Supports and resistances

4.6422 **

4.6365 *

4.6308 **

4.6251

4.6125 last

4.5996

4.5958 **

4.5863 *

4.5807 **

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