On the weekly
time frame the pair is close to the
resistance trend line of the flag that has been developing since 2016.
The pair
has reached a strong resistance around 0.8124 – 0.8135. It tried to break out above in September 2017
but it was unsuccessful.
On the D1
time frame one can notice that the test of that resistance has lasted for
several days and there is even a RSI divergence.
I think
that a rally to the resistance trend line of the flag on the monthly time frame
around 0.82 is possible, but if there is not breakout the pair will probably
return within the consolidation and it will continue to develop the flag. Obviously this is a key zone and we should
follow closely the pair’s development in it.
It's consolidating sideways for now.
ReplyDeleteWell spotted! It could be a good turning point.
ReplyDeleteGood insight.
ReplyDeleteGood post!
ReplyDeleteA pullback is ahaed.
ReplyDeleteVery good analysis.
ReplyDeleteKeep up the good work.
ReplyDelete