The market was unable to build upon Tuesday’s renewal of selling interest yesterday. Instead, reacting to oversold extremes, some profit taking developed. These gains were not extensive but enough to form a Bullish Piercing pattern on candle charts – a formation that can signal a change in sentiment.
Coupled with increasingly positive momentum we look for the rally to build with the key 13 day moving average at 1.6647 the objective. The reaction to that point should then be significant in the coming days.