• Cotton reversed from support area
• Likely to reach resistance level 81.25
Cotton recently reversed up from the support area located between the key resistance level 78.20 (which has been reversing the price from the start of January), lower daily Bollinger Band and the 61.8% Fibonacci correction of the sharp upward impulse from November. The upward reversal from this support area created the daily Japanese candlesticks reversal pattern Bullish Engulfing.
Given the strong multi-month uptrend and the improvement in the risk sentiment seen across the commodities markets today – Cotton currency pair is likely to rise further toward the next resistance level 81.25 – followed by the resistance level 82.70 (former support from March).