1.2850 – 1.2870 is a support zone, if one examines it on the 4-hour time frame, and on the 1-hour time frame the pair is forming doji candlesticks right around that support zone, marked by the Bollinger Bands indicator.
Even if the pair continues falling, the possibility for a correction to the upside from this zone is quite serious and the correction could reach the resistance trendline (the red line).
Another argument supporting the scenario where the pair is about to move to the upside is the presence of three waves to the downside, which can be seen on the monthly time frame, and which are almost equal in depth.
In the alternate scenario, of course, the pair will continue falling without a correction towards 1.2800 – 1.2700.
All that said, I think the latter scenario is less probable.
Very accurate analysis, thank you.
ReplyDeleteI fully agree with your assessment "on the verge of a small correction to the upside."
ReplyDeleteThanks for such an informative analysis.
ReplyDeleteSelling high is still a good deal.
ReplyDeleteLet’s see how it keeps going.
ReplyDeleteGood article, thank you for sharing.
ReplyDeleteVery good post.
ReplyDeleteGood post!
ReplyDelete