Although
the pair broke out above the resistance trend line, the weekly resistance
marked by the Bollinger Bands indicator in the zone around 111.70 – 112.00 proved to be very strong and
the pair has been trying to break out above it for five days now.
Meanwhile
three bearish bars formed on the daily time frame, which are an unambiguous signal
that the pair won’t be able to break out the resistance without a significant
correction.
Under these
circumstances there is a possibility for a drop and a test of the resistance
trend line that was broken out above, before the pair is able to test and break
out above the zone around 111.70 – 112.00.
The
scenario where the downward trend is renewed appears less probable for the
moment, but surprises are always possible.
Good insight.
ReplyDeleteGood post!
ReplyDeleteStill consolidating.
ReplyDeleteConsolidation continues for now.
ReplyDeleteVery good analysis.
ReplyDeleteSo far, the pair is lack of directional strength.
ReplyDeleteThanks for the relevant information.
ReplyDeleteInteresting levels to be watchful of, thanks for the info.
ReplyDelete