Apart from the trend channel breakout, which can be seen on the 1-hour time frame screenshot, inside the trend channel itself the pair has formed a pennant pattern, and it has broken below its support trendline too.
The pattern is especially obvious on the 30-minute and 15-minute time frames.
The RSI divergence on the 4-hour time frame remains valid.
At this stage the pair has fallen to 110.266 and it has rebounded from that level, testing the breakout levels of the trend channel and the pennant pattern. That is normal and in my opinion the move to the downside requires a catalyst to happen – a news event that will provoke a sell off of this pair. This usually occurs during the American or the Asian sessions, so all we can do now is be patient.
Very helpful analysis, thank you.
ReplyDeleteGood point! I fully agree with your view.
ReplyDeleteI also agree with your viewpoint!
ReplyDeleteA rising wedge in the making is not a good sign for bulls!
ReplyDeleteGood post!
ReplyDeleteThank you for the post.
ReplyDeleteGood insight.
ReplyDeleteTaking note of key levels to keep track and follow up.
ReplyDeleteDownside is limited.
ReplyDelete