The price of the US dollar remains in the range against the Bulgarian lev, fueled by geopolitical uncertainty and mixed global economic data.
The price forms a “Head with shoulders” figure, which could potentially develop north and lead to a short-term appreciation of the US dollar against the lev.
The DeM indicator is still below the overbought area and is facing up, with a break and a neck line. It is important to mention that we do not yet have a neckline test. With bullish bullish momentum on the dollar, we will expect the price to succeed and break Fibonacci’s level of 23.6 as well as test the diagonal resistance.
The potential target of the figure is the zone at 1.78454, but before that we have a key resistance zone (colored in blue) at 1.78040.
Alternatively, if the price fails to hold above the Fibonacci and diagonal, the bullish scenario will collapse, expecting the price to return back to the downward channel.
Trader Martin Nikolov