USD/COP may rise 1634 - 2454 pips

Our pivot point is at 3977.70.

Our preference

The upside prevails as long as 3977.70 is support.

Alternative scenario

The downside breakout of 3977.70 would call for 3963.90 and 3955.80.

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 3971.60 and 3950.10).

Supports and resistances

4029.30 **

4021.10 *

4013.00 **

4004.80

3988.46 last

3983.10

3977.70 **

3963.90 *

3955.80 **

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