Long term trend: Down
Medium term trend: Down
Significant Levels: 0.8000 (Significant Round Number & Horizontal Resistance), 0.7780 (Horizontal Support), Downtrend, Fibonacci Retracement, Rectangle
A small rectangle pattern was formed on this chart. The price consolidation remained for more than two weeks now, which indicates that the market is indecisive on which way to go. The range is about a hundred pips. Again, the range is so small that the market really don't know which direction they want to go. The price, as can be seen in the daily chart, didn't close or open outside the rectangle. We are bearish here, therefore, we prefer for the price to break below the rectangle pattern. This rectangle can also serve as the support area now as this is near our Horizontal Support.
Another possibility is that the price might reach the trend line before going back down. The bottom line is that we are bears and we are going to sell this currency pair. Trade well.
Medium term trend: Down
Significant Levels: 0.8000 (Significant Round Number & Horizontal Resistance), 0.7780 (Horizontal Support), Downtrend, Fibonacci Retracement, Rectangle
A small rectangle pattern was formed on this chart. The price consolidation remained for more than two weeks now, which indicates that the market is indecisive on which way to go. The range is about a hundred pips. Again, the range is so small that the market really don't know which direction they want to go. The price, as can be seen in the daily chart, didn't close or open outside the rectangle. We are bearish here, therefore, we prefer for the price to break below the rectangle pattern. This rectangle can also serve as the support area now as this is near our Horizontal Support.
Another possibility is that the price might reach the trend line before going back down. The bottom line is that we are bears and we are going to sell this currency pair. Trade well.