Since then, we see behaviour that is typical for reversals: smaller candles followed by a very strong candle slamming down, often many of the previous bull candles. This is a signal that while the bulls are still trying to push the price up, their attempts are lacking momentum and every time, the reaction from the bears is much stronger and pronounced. Currently, the price is struggling to break through the local around the 0.73350 price level.
Other than that, it's very clear that we have divergence on the way up and that the price is in the oversold regions ( well over 200.0%). The last attempt to push the price up earlier today resulted in a and a 20 rejection, which is further indication that the price might be close to breaking the local support and start a move further down.
So this is what I'm waiting for: a strong break (and close!) below the 0.73350 level. I might actually prefer to see a small retracement before that break, as it often is a sign that the following move will have some legs as it shows that the bulls are really exhausted by then. But we can only wait, the price might just as well break the level immediately.
News-wise, we have Canadian retail sales data tomorrow and Canadian CPI release on Friday. Something to be aware of.
This and other setups are described on my website, where you can find my weekly forex outlook.
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