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Key technical zone: 88.45–88.80
The market is sitting inside a tight technical band. A decisive breakout above 88.80 or a breakdown below 88.45 is likely to set the tone for the next move. Traders are watching this range closely because it represents recent support and resistance that has contained price action.
What a breakout above 88.80 would mean
If price clears and holds above 88.80, it suggests renewed bullish momentum. You can expect:
- Increased buying interest and higher probability of a trend continuation.
- Short-term targets forming at nearby resistance levels, with potential for further gains if volume confirms the move.
- Momentum indicators (like RSI or MACD) likely to turn more positive, reinforcing the breakout.
What a breakdown below 88.45 would mean
A clear break under 88.45 would tilt the balance toward sellers. Typical outcomes include:
- Acceleration of downward pressure and the possibility of a deeper pullback.
- Support zones being tested lower, and traders re-evaluating long positions.
- Indicators often showing increased volatility and bearish divergence.
How traders can approach the range
- Wait for confirmation: Prefer a daily close or a retest to avoid false breakouts.
- Use volume: Strong volume on a breakout adds conviction; low volume suggests caution.
- Manage risk: Set stop-losses just outside the opposite side of the range to protect capital.
- Plan targets: Define first and secondary targets before entering a trade to capture potential moves.
In short, the 88.45–88.80 zone is a pivot. Whether the market moves up or down will depend on which side wins the battle and whether that move is backed by volume and confirmation. Traders should stay disciplined and let the price action guide decisions.