After the pair renewed its move to the downside from 115.615, it fell toward 112.514 without a problem, but at that level it met a pretty strong support, which was confirmed by the RSI divergence between three lows that could be observed on the M30 time frame. The limit of that divergence is at 114.30. At the current levels (113.60 – 113.80), however, the pair once again met strong resistance at the trend line and it has been consolidating in this zone for twenty hours now.
If the pair breaks above the resistance trend line I think we could expect a move to the upside toward 114.30 , which means that it will reach the limit of the divergence, and if it continues moving to the upside it could reach 117.00.
If the pair cannot break above the resistance trend line I think we can expect a renewal of the move to the downside and a drop toward 110.80 – 110.50.
Good bearish channel.
ReplyDeleteThanks for such an informative analysis.
ReplyDeleteGood analysis.
ReplyDeleteGood point. I'll keep a close eye on it.
ReplyDeleteGood post!
ReplyDeleteGreat assessment!
ReplyDeleteGood post.
ReplyDeleteGood post, thanks.
ReplyDelete