The Existing Downward Trend Would Lead To A Break Out Below 1.1510

The pair tested firmly the break out below the trend line (in light blue) and in the moment it is trading in a consolidation between the trend line, which has become a support and the dynamic  support above 1.1570.

If we examine the D1 time frame we could say with certainty that the trend is firmly bearish. Now we have to see whether there will be a breakout below the support at 1.1570 until the end of today’s American session or the pair will close the D1 bar once again below the diagonal support as well as the kind of bar it will form when it closes.

In my opinion, in case the pair does not manage to break out below 1.1570 the bar may be a doji or a spinning top, after which the pair will test 1.1510 and if it breaks out below that level it will head for 1.1300.

The alternative scenario is for a rally to 1.1700 and 1.1750.