There has
been a breakout below the pennant that has been developing for a year and a
half and there are even opportunities to open short positions from better
levels.
As it often
happens after a breakout below or above a trend line of different figures (a
pennant, a flag, a wedge, etc.) the
price recovers not only to test the breakout but climbs deeper within the
figure, after which it heads toward the limit of said figure, which is the
height of the figure from its base to the first level at which the instrument reached the
opposite trend line.
As we all
know, usually the limit of these instruments is reached indeed.
In this
case said limit is over 2400 pips starting from the breakout level (at 148.123). If the pair reaches the limit it will drop
to 124.00 or even lower.
That is, of
course, with the caveat that this is a downward trend where one could find
countless other entries for positions.
Good insight.
ReplyDeleteThat's very helpful, thank you.
ReplyDeleteThere is still space for further decline
ReplyDeleteLooks like its getting ready to push lower.
ReplyDeleteWill keep in mind these levels.
ReplyDeleteLet’s see how it keeps going.
ReplyDeleteThe pair continue pushing lower.
ReplyDeleteGood post!
ReplyDelete