USD/CZK may rise 107 - 153 pips

Our pivot point is at 22.912.

Our preference

The upside prevails as long as 22.912 is support.

Alternative scenario

The downside breakout of 22.912 would call for 22.835 and 22.789.

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 positive and above its signal line. The configuration is positive. Moreover, the price is above its 20 and 50 period moving average (respectively at 22.882 and 22.889). Finally, the USD/CZK is trading above its upper Bollinger band (standing at 22.964).

Supports and resistances

23.218 **

23.172 *

23.126 **

23.080

22.973 last

22.942

22.912 **

22.835 *

22.789 **

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