The support is provided by the 23.6 percent retracement on the downtrend from $1.3575 to $1.1530. Working together with the support is another one at $1.2065, the 50 percent retracement on the uptrend from $1.1530 to $1.2595.
The pattern between April 4 and April 25 looks like an inverted head-and-shoulders. It signals a reversal of the downtrend. A break below $1.2015, however, could indicate the continuation of the trend.
A break above $1.2190 could lead to a further gain to $1.2310.
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Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.