Technical Analysis: I would like to quote R.N. Elliott himself concerning the channel line breakout in this pair. " Wave 5 often ends when meeting or slightly exceeding a line drawn from the end of wave 3 that is parallel to the line connecting the ends of waves 2 and 4, on either arithmetic or semilog scale". Meaning wave 4 broke the support channel line so therefore wave 5 should also be expected to break the resistance channel line. Also pay attention to the back of the support line. Did you notice that the 0.236 fib level is using it as past support turned future resistance? All of these things add up and if we include the indicators we can see severe over bought conditions.
Fundamental analysis: The dollar on the news just came out stronger this week, so i believe the government shutdown has exaggerated the strength of some pairs like this one where the USD is not the base currency.
Fundamental analysis: The dollar on the news just came out stronger this week, so i believe the government shutdown has exaggerated the strength of some pairs like this one where the USD is not the base currency.