USD/RON may rise 125 - 187 pips

4.5401 is our pivot point.

Our preference

The upside prevails as long as 4.5401 is support.

Alternative scenario

Below 4.5401, expect 4.5296 and 4.5234.

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 above its 20 and 50 period moving average (respectively at 4.5457 and 4.5436). Finally, the USD/RON is trading above its upper Bollinger band (standing at 4.5497).

Supports and resistances

4.5826 **

4.5764 *

4.5701 **

4.5639

4.5514 last

4.5443

4.5401 **

4.5296 *

4.5234 **

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