The way the bar on the monthly time frame closed tells me that that the expectations for a new drop should be forgotten at this stage. The bullish doji bar that has formed on the chart is a signal for a serious renewal of the move to the upside.
On the daily time frame the pair is obviously moving toward the resistance trend line of the channel and there is no doubt anymore that it will reach it.
If the pair breaks out above the trend line we could accept that the A-B-C correction to the downside is over and we could expect a serious rally, perhaps to 123.00 – 124.00.
In the alternate scenario the pair will reach the trend line and begin to fall again, but I think that is less likely to happen.
The move to the upside continues indeed.
ReplyDeleteVery good analysis.
ReplyDeleteInteresting levels to keep in mind, thank you!
ReplyDeleteGood insight.
ReplyDeleteGood post!
ReplyDelete