As I expected, after two weeks and multiple tests EUR/USD could not break out above 1.1285 and after the last clearly defined “hanging man” bar the pair started falling.
It is possible that the move to the downside will continue for a test of the support trend line (in blue) in the next week, or even in the next few weeks, and there might even be a breakout below the trend line.
We should pay attention to what sort of a figure the pair will form – a horizontal consolidation with a tendency to the downside would be a clear sign for the gathering of liquidity for a renewal of the rally. Apart from that, if the figure is clearly recognizable it would be possible to ascertain the entry for long positions with target 1.1500 and above quite precisely.
Good resistance and support levels.
ReplyDeleteLet's see whether it will rally next week.
ReplyDeleteGood take on markets, really insightful.
ReplyDeleteThanks for such an informative analysis.
ReplyDeleteThe pair has a small gap up.
ReplyDeleteGood analysis.
ReplyDeleteGreat assessment!
ReplyDelete