The pin bar
on the daily time frame proved to be a false signal and the trend channel seems
to be nothing more than a flag that the pair broke out below. Rather than the
expected rally the pair fell sharply, broke out below the support trend line
and if it breaks out below 1.1570 it may
test the local support in the zone around 1.1540 - 1.1510.
It is still
difficult to say how the pair will behave once it reaches that zone. The
depreciation could be part of a corrective flag and it could begin moving north
while forming said potential flag, but on the other hand the depreciation may
continue as the USD is clearly very strong at the moment compared to all
currencies.
That is why
it is prudent to close one’s position at that support and then to wait for a
new trustworthy signal to open new ones.
Thank you for sharing your assessment!
ReplyDeleteMedium-term still consolidating.
ReplyDeleteImportant levels to keep in mind!
ReplyDeleteConsolidation continues for now.
ReplyDeleteGood post!
ReplyDeleteGood insight.
ReplyDeleteGood tips.
ReplyDeleteVery helpful and insightful analysis, excellent.
ReplyDelete