The pair has reached a very serious level of support at 109.50, visualized by the lower band of Bollinger Bands on the montly time frame. It was logical that the pair would not be able to break below that support right away.
On the weekly time frame there is a doji candlestick, which can be interpreted as a signal that the pair may have ended its move to the downside for now. This is one of the largest time frames, so its also logical to conclude that the correction that will follow will likely be quite deep.
On the daily time frame there is also a double bottom after which the pair started rising.
The first level of resistance is at 109.80, and if the pair succeeds in breaking above it, it will continue climbing towards 112.00. A breakout above that level could lead to a further rally towards 114.80.
Still, we shouldn’t forget that the main trend is bearish and it remains to be seen how high the pair will climb before it continues on its way down to 104.00 which is a very strong support visualized by (EMA)89 on the monthly time frame.
Good analysis, thank you for sharing!
ReplyDeleteGood post!
ReplyDeleteWell spotted! I fully agree with your assessment.
ReplyDeleteIt's still trying to break above 109.80.
ReplyDeleteExcellent Analysis! Thanks.
ReplyDeleteHelpful analysis.
ReplyDeleteuseful, keep going
ReplyDeleteGood posts, very helpful for all traders.
ReplyDelete