Since the move upwards to 4280 was a strong move, probabilities run high that the black curve is the new support level, and we are at the bottom of the range having a higher low than 3800 in place.
This emphasizes how important is the 3800-3920 for this pair. Beyond that as we discussed on the Monthly and Weekly time frames, we run the chance of dipping lower to 3000 level, and market psychology does not want this to happen yet.
When 2 support levels are within a distance of 100-120 pips from each other, such as the situation here, where the separation between Circle #1 and Circle #2 is 100 pips, it becomes increasingly risky to short price action within this zone.
This emphasizes how important is the 3800-3920 for this pair. Beyond that as we discussed on the Monthly and Weekly time frames, we run the chance of dipping lower to 3000 level, and market psychology does not want this to happen yet.
When 2 support levels are within a distance of 100-120 pips from each other, such as the situation here, where the separation between Circle #1 and Circle #2 is 100 pips, it becomes increasingly risky to short price action within this zone.